Yuan Flirts With Daily Trading Limit, Testing China’s Red Line
- Onshore currency falls to trade 1.9% weaker than PBOC fixing
- Worsening credit risks, an advance in dollar hurt yuan
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The yuan weakened toward the limit of its fixed trading band against the dollar, as China’s worsening property crisis and a stronger dollar delivered a one-two punch to the embattled currency.
The onshore yuan this week declined to trade more than 1.9% weaker than People’s Bank of China daily reference rate, which limits the currency’s allowed range by 2% on either side. On Monday, it came the closest to the limit of the band since last October.