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China’s Yuan Set for Steepest Weekly Loss Since January Turmoil

  • Late evening paring of declines spurs intervention speculation
  • Ten-year sovereign bond yields rise most since May 2015
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Photographer: Qilai Shen/Bloomberg
Updated on

China’s currency headed for its steepest weekly drop since January, when a series of weaker fixings roiled global financial markets, as Donald Trump’s election victory boosted the dollar and raised the threat of a more protectionist America. Bonds tumbled.

The yuan fell 0.05 percent to 6.8121 per dollar as of 5:33 p.m. in Shanghai, approaching the 6.83 level at which China pegged its currency after the 2008 global financial crisis. The exchange rate fell 0.9 percent this week to a six-year low as Trump’s unexpected win spurred a tectonic shift in fund flows. There was a flurry of activity in the evening, with the yuan erasing the day’s losses amid speculation of central bank intervention. The 10-year yield on government debt climbed 10 basis points this week, the most since May 2015.