Yuan Slumps to Near-Two-Year Low as Rate Differential Widens
- Chinese currency falls to weakest level since September 2020
- PBOC offered no pushback so far with daily yuan reference rate
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China’s currency slumped to the weakest level against the dollar in nearly two years as the nation’s widening monetary-policy gap with the US drove outflows from the world’s second-largest economy.
Both the onshore and offshore yuan tumbled to the weakest since September 2020. The decline was initially triggered by an unexpected rate cut by the People’s Bank of China this week. The selloff gathered pace amid the dollar’s latest surge and as the PBOC set the yuan fixing at the lowest level since 2020.