China Jolts FX Markets as Yuan Suffers Worst Day in Two Months
- Currency slid after PBOC set weaker-than-expected daily fixing
- Fixing sent a signal PBOC may allow further weakness: Maybank
This article is for subscribers only.
China’s tentative loosening of its vise-like grip on the yuan unleashed a slide in the currency and pulled down its Asian peers along the way.
The onshore yuan dropped the most in more than two months after the authorities set a weaker-than-expected daily fixing, fueling speculation they would tolerate further losses. The decline took the currency to within 0.2% of the end of its allowed daily trading band of plus or minus 2% from the fixing.