China’s Yuan Drops to a Decade-Low, 7 Per Dollar Now in Sight
- Potential trade war escalation adds to pressure on currency
- Yuan has depreciated about 9 percent over the past six months
Mohammed Apabhai of Citigroup Global Markets talks about China’s yuan and stocks.
(Source: Bloomberg)This article is for subscribers only.
China’s yuan touched the weakest level since May 2008, as the central bank cut its daily fixing and on signs that a trade war with the U.S. may escalate.
The currency declined as much as 0.15 percent to 6.9724 per dollar in Shanghai, within 0.5 percent of 7 -- a level hasn’t been reached since the global financial crisis. That came after the People’s Bank of China weakened its daily reference rate, which restricts the onshore yuan’s moves by 2 percent on either side, to the lowest in more than a decade.