Offshore yuan softens against the dollar after PBOC cuts fixing
The Chinese central bank also slashes currency’s mid-point rate against the British pound to 8.4193, on High Court’s Brexit ruling
The offshore Chinese yuan weakened further on Friday morning, after the People’s Bank of China cut the currency’s reference rate.
The offshore yuan, which trades in Hong Kong, dropped 0.01 per cent to 6.7706 per US dollar in Hong Kong. However, the onshore yuan strengthened 0.06 per cent in Shanghai to 6.7611 per US dollar.
The People’s Bank of China cut the yuan’s guidance rate following two days of stronger fixings. It set the yuan’s mid-point rate at 6.7514 against the US dollar, down 23 basis points on the previous fix.
The Chinese central bank also slashed the yuan’s mid-point rate against the British pound to 8.4193, down 1,130 basis points from the previous reference rate.
China allows the spot yuan rate to move up or down no more than 2 per cent around the daily fix.
On Thursday, the greenback touched a multi-week low of 97.041, before bouncing back to 97.15.