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The US dollar was on track for its biggest one-day rise against the yuan for three months on Monday after data showed China’s economy ran into further trouble in July and the central bank cut interest rates.
The greenback was up 0.85% against China’s offshore yuan on Monday morning US time, with one dollar equaling 6.791 yuan. The dollar was up around 0.45% against the onshore yuan, which is more closely controlled by the government, to 6.773 yuan.
China’s currency dropped sharply after a raft of economic data made clear the economy weakened in July.
Industrial output growth slowed from June and came in well below economists’ expectations; retail sales growth also slowed; and youth unemployment neared 20%.
The central bank cut two key interest rates in an effort to stimulate investment, adding to the pressure on the yuan.
