China’s yuan falls to lowest level against US dollar since 2008 global financial crisis
- China’s onshore yuan closed at 7.2494 per US dollar on Friday, representing the weakest close since January 14, 2008
- Reports said Chinese state-owned banks were seen selling US dollars in the onshore foreign exchange market on Friday in an apparent attempt to stabilise the currency
China’s yuan resumed its weakening trend against the US dollar on Friday, finishing the domestic session at the weakest level since the global financial crisis of 2008 as the US dollar soared on heightened expectations of more interest rate increases.
The yuan gained some support on Thursday after a Bloomberg report that China is considering reducing the coronavirus quarantine time for inbound travellers, citing unidentified sources, though other details were scant.
Prior to the market opening on Friday, the People’s Bank of China (PBOC) set the midpoint rate at 7.1186 per US dollar, 2 pips firmer than the previous fix 7.1188.
In the spot market, the onshore yuan opened at 7.2320 per US dollar and was changing hands at 7.2462 at midday, 302 pips weaker than the previous late session close and 1.8 per cent softer than the midpoint.
It eventually closed at 7.2494 per US dollar, representing the weakest close since January 14, 2008.