Chinese Yuan Extends Drop to Six-Month Low as U.S. Yields Rise

  • Offshore currency weakens as Chinese growth risks loom
  • Treasury yields are surging across the curve, lifting dollar

Nearly-empty roads during a lockdown due to Covid-19 in Shanghai on April 19.

Photographer: Qilai Shen/Bloomberg
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The yuan slipped to its weakest level in six months, pressured by concern surrounding China’s growth outlook and a surge in U.S. Treasury yields.

China’s offshore currency weakened by as much as 0.7% to 6.4230 per dollar in New York trading, its lowest since October 2021. The decline comes as a growing number of traders fear the world’s second-largest economy is becoming snarled in lockdowns -- igniting fresh chaos to global supply chains.