Array
China’s yuan weakened to its lowest mark against the dollar since 2008, depreciating to about 7.2 per greenback Wednesday.
The onshore unit dropped to a level not seen since February 2008, and has tumbled 12% versus the dollar so far in 2022, on pace for its worst annual loss since 1994.
The offshore currency, similarly, dropped to a record low based on figures that date back to 2010, according to Bloomberg.
The People’s Bank of China has this month consistently placed a strong bias to its currency reference rate, but Wednesday set it to its smallest margin — 444 pips stronger than the average Bloomberg survey estimate — since September 13, which signals policymakers may be easing support for the yuan.
“The foreign exchange market is of great importance, and maintaining its stability is the top priority,” the bank said in a Wednesday statement, adding that traders shouldn’t be speculating against the yuan.
