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Yuan Falls to Lowest Since 2008 on Hawkish Fed, Growth Risks

  • Covid-led lockdown in Xi’an is deepening growth concerns
  • PBOC seen allowing weaker yuan fix after congress: survey
The People's Bank of China building in Beijing, China.

The People's Bank of China building in Beijing, China.

Source: Bloomberg

By
Bloomberg News
Updated on

The onshore yuan fell to the weakest level in 14 years as the dollar strengthened on hawkish comments from a Federal Reserve member and as Covid-led lockdowns in parts of Xi’an intensified growth concerns. 

The Chinese currency slumped to 7.2525 per dollar, the lowest since January 2008. That’s after the US currency rose following Philadelphia Fed President Patrick Harker’s comment that the central bank is likely to raise interest rates to “well above” 4% this year and hold them at restrictive levels to combat inflation.