Offshore Yuan Falls for Second Day as Bears Reload After Squeeze
- StanChart, NAB strategists predict continued weakness
- Traders increase bets that offshore yuan will decline
A Deep Dive Into Currencies: Yuan, Pound, EM
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The yuan’s volatile start to 2017 showed no signs of abating, with the offshore currency tumbling for a second day as China’s central bank weakened its fixing by the most since June.
The exchange rate fell 0.5 percent to 6.8844 per dollar as of 5:24 p.m. in Hong Kong, extending a 0.9 percent drop on Friday that was the biggest in a year. The offshore yuan is set to post the biggest two-day slump since June today, after moving 0.5 percent or more in four of the six trading sessions so far this year, a magnitude it only surpassed 11 times in all of 2016.