Yuan’s overall losses widen to 5pc as it extends decline for 13th straight session

The yuan’s losses has increased almost 5 per cent as the currency has lost value against the US dollar for the 13th straight trading day on Monday even as the People’s Bank of China set the yuan midpoint higher, the first upwards adjustment in nine days.

Analysts believe that yuan weakness will remain a theme ahead of US trade tariffs on Chinese goods set to come into effect on Friday.

The offshore yuan traded by international investors stood at an 11-month low of 6.6786 per US dollar on Monday evening, down 0.7 per cent from the previous session.

On Friday, the offshore yuan eased to 6.6521 per dollar, but bounced back to close at 6.6339.

The currency has fallen for 13 straight trading days, reflecting the longest losing streak since the offshore yuan market started in 2010. The currency has lost 4.6 per cent since June 14.

The offshore yuan is usually traded stronger than its onshore counterpart, however it is currently 194 basis points weaker. The onshore yuan was quoted at 6.6592 per US dollar on Monday, down 0.6 per cent from its previous close.