Yuan falls as PBOC sets mid-price at lowest in 19 months
Offshore yuan traded by international investors drops 0.23 per cent to 6.9407 in early trade
The yuan fell on Thursday morning after China’s central bank set its mid-price lower for the ninth day running, as it dropped to its weakest level in 19 months.
Traders were focused on the US, where stocks fell, and whether officials there will brand the Chinese as currency manipulators by weakening the yuan as a weapon to fight against the impact of the ongoing trade war between the nations.
Offshore yuan traded by international investors dropped 0.23 per cent to 6.9407 to the US dollar in early trade, while onshore yuan traded by the mainland traders fell 0.13 per cent to 6.9242.
The mid-price was 6.9098, its lowest since March 15, 2017.
The yuan is not yet freely convertible and traders can only trade up to two per cent in each direction of the mid-price set every morning by the PBOC. The lower level of the mid-price is generally seen to be pointing the direction of the market.