Offshore Yuan Drops Past 7 Per Dollar for First Time Since 2020
- Yuan is one of the biggest losers in EM currencies Thursday
- The currency weakens despite PBOC pushback via fixing
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China’s yuan weakened past the key 7 per dollar level for the first time in more than two years as a fragile economy and strength in the greenback weighed on the currency.
The offshore yuan fell as much as 0.7% to 7.0186 per dollar, the lowest since July 2020. That was spurred by a rally in the greenback at the start of New York trading, as the latest US inflation data fuels bets for a large Federal Reserve rate hike this month that would further widen China’s monetary-policy gap with the US and drive outflows. The currency is also under pressure as Covid lockdowns and slowing exports growth hurt the economy.