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The yuan weakened past the 6.6 per dollar level for the first time in six months, though it recovered some losses by midday. The PBOC lowered its yuan midpoint for a sixth straight day to 6.5569, its weakest fix since late December.
Analysts said the central bank appears willing to allow moderate depreciation amid an escalating Sino-U.S. trade dispute.
A sustained weaker yuan raises the dollar cost of US agricultural imports for China, which can reduce purchasing and weigh on soybean and meal prices. The move also reflects rising trade-war risk that could curb Chinese feed demand.
cnbc.comReutersJun 27, 2018After 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.
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 PBOC weakened its midpoint fix for a sixth straight day and the yuan broke past 6.6 per dollar, signaling tolerance for depreciation and driving USD/CNY higher.
