Loading…
China's yuan hit a six-month low and recorded its biggest quarterly fall against the dollar on record. Sources told Reuters the PBOC was willing to let the yuan weaken to 6.8 per dollar over the rest of the year, though the central bank called the report inaccurate.
The currency was trading near 6.6 per dollar, about 3% weaker since March.
A central bank tolerating further yuan weakness lowers the cost of Chinese purchases of dollar-priced commodities for importers, but it also signals softer Chinese demand and a firmer dollar.
reuters.comJun 30, 2016After 398 past bullish macro events, Chinese Yuan (CNY per USD) moved a median +0.0% over 5 sessions (56% higher; middle half -0.3% to +0.5%), and +0.0% over 20.
After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
The yuan hit a six-month low with a record quarterly fall and reports of PBOC tolerance for 6.8, which reinforced depreciation expectations at the end of the window.
