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.
