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PBOC Offers No Pushback as Yuan Tumbles to Three-Month Low

  • Offshore yuan slid past 6.8 on Monday for first time since May
  • Yuan may fall to seven per dollar this year: Capital Economics
The yuan’s slump on Monday helped the currency break out of the narrow trading band that has held over the past two months. 

The yuan’s slump on Monday helped the currency break out of the narrow trading band that has held over the past two months. 

Photographer: Paul Yeung/Bloomberg
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China’s central bank set its fixing for the yuan weaker on Tuesday, failing to show any overt pushback after the currency slid to a three-month low against the dollar the previous day. 

The People’s Bank of China set the yuan reference at 6.7730 per dollar, 0.5% lower than the previous print, the largest daily cut since Aug. 3. The level though was virtually in line with the average estimate in a Bloomberg survey of analysts and traders. The offshore yuan slid as much as 1.2% Monday after the central bank bucked the global tightening trend to ease policy.