Yuan Plunge Nears 14-Year Low, Inviting Aggressive PBOC Pushback
- Currency is on track for biggest annual decline since 1994
- PBOC’s intervention so far has failed to stop depreciation
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Traders are bracing for more pushback from China’s central bank as the yuan approaches the lowest level in 14 years.
The onshore yuan has lost about 4% over the past month, trading within 1% of 7.2 per dollar, a level it hasn’t reached since 2008. The People’s Bank of China has already stepped up its currency defense, but it did little to stop the depreciation.