China's Yuan Sinks Past Key Level, Will Test PBOC's Resolve
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Traders will be watching to see what Chinese policymakers do to defend the yuan after it tumbled past a key level against the dollar.
The yuan sank as much as 1.1 percent in overnight offshore trading to 6.7249, its biggest loss since January 2016, as a trade conflict with the U.S. worsened. When the Chinese currency last weakened past 6.7 earlier this month, central bankers vowed to keep it stable and not deploy it as a weapon in the dispute -- helping spur a rebound. On Thursday, the People’s Bank of China set the daily reference rate at 6.6726, stronger than estimates compiled by Bloomberg.