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.
Photographer: Paul Yeung/BloombergThis article is for subscribers only.
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.