China sets Yuan midpoint at weakest since 2008 after currency drop

Chinese Yuan banknotes are seen behind illuminated stock graph in this illustration taken February 10, 2020. (Reuters)

China set its daily yuan reference rate at the weakest level since 2008 after increasing political tensions with the US drove the currency to a seven-month low.

The People’s Bank of China set the yuan fixing at 7.1209 per dollar. That compares with the 7.122 average estimate in a Bloomberg survey of traders and analysts. The fixing limits the onshore yuan’s moves to 2 percent in either direction.

The offshore rate, which edged toward the weakest level on record last week, was little changed at 7.1502 per dollar on Monday.

The onshore yuan last closed at 7.131 per greenback in Shanghai on Friday. The daily fixing is calculated with formulas that take into account factors such as the previous trading day’s official close at 4:30 p.m, the yuan’s move against a basket of currencies and the moves in other major exchange rates.

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Last Update: Monday, 25 May 2020 KSA 04:53 - GMT 01:53
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