Yuan Slumps Most Since March After PBOC Acts to Arrest Gains

Central bank scrapped rule that made yuan bets expensive
Currency loss steepens before 4:30 p.m. official close

Watch: The PBOC is moving to tame the yuan surge saying financial institutions no longer need to set aside cash when buying foreign exchange for clients through a currency forwards.(Source: Bloomberg)

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Bloomberg News

October 11, 2020 at 9:02 PM EDT

Updated on

October 12, 2020 at 7:20 AM EDT

This article is for subscribers only.

The offshore yuan tumbled the most in almost seven months after China’s central bank took steps to restrain the currency’s rally.

The exchange rate slumped as much as 1.03% against the dollar in late Hong Kong trade on Monday. Declines steepened without an obvious trigger just before the 4:30 p.m. official close of the onshore rate, which helps determine the next day’s reference rate. The drop may mark the start of a period of consolidation after recent gains, strategists said.