China Lets Yuan Weaken After Defending 7.3 Per Dollar for Weeks
- Move opens room for Chinese currency to slide further
- Yuan pressured by sluggish economy, interest-rate gap with US
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The onshore yuan weakened past a level that China had been defending throughout December, opening up room for the managed currency to drop further amid a sluggish economy.
The yuan breached the psychological milestone of 7.3 per dollar for the first time since late 2023, amid concerns over China’s economic struggles and a widening bond yield discount to the US. The move came even as the central bank maintained its support for the currency with its daily reference rate on Friday.