Reuters
China’s central bank guided the yuan to its weakest value against the dollar in more than six months Thursday, the latest leg down for the Chinese currency in a slide that has gathered pace this week.
The People’s Bank of China set the dollar’s reference rate at 6.5960 yuan, 0.6% lower than its value in the previous day’s “fix,” which reflects the previous day’s close and overnight currency moves. That put the yuan at its lowest level against the dollar since Dec. 20.
The yuan fell further shortly after trading began in mainland China, hitting its weakest value since Dec. 13, according to Wind Info. In recent action, one dollar bought 6.6167 yuan , putting the Chinese currency on track for a daily loss of 0.3%.
In the offshore market, the yuan was little changed from the previous day with one dollar buying 6.6192 yuan.
The yuan’s drop accelerated after China and the U.S. escalated threats of trade tariffs in the middle of this month, and got another push Sunday after China’s central bank announced measures to inject more than $100 billion into the financial system.
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