China’s onshore yuan drops against US dollar amid escalating tensions, hits lowest level since December

The onshore yuan finished the domestic trading session on Friday at 6.9442 per US dollar, the weakest close since December 30

US is set to expand the number of troops helping train Taiwanese forces at a time of heightened tensions between Washington and Beijing

Reading Time:2 minutes

Bilateral relations have long been one of key factors influencing the currency market during the past few years, and traders said the latest development dented sentiment toward the yuan. Photo: Reuters

Published: 1:23pm, 24 Feb 2023Updated: 5:30pm, 24 Feb 2023

China’s yuan extended losses on Friday afternoon to finish the domestic session at the weakest levels in nearly two months, pressured by fresh signs of escalations in tensions with the United States.

The onshore yuan ended the domestic session at 6.9442 per US dollar, 354 pips or 0.51 per cent weaker than the previous late night close of 6.9088, the weakest such close since December 30.

The onshore yuan gave up all the gains it has booked so far this year, and fell by 0.6 per cent to the US dollar.

The United States is set to expand the number of troops helping train Taiwanese forces, two US officials said on Thursday, at a time of heightened tensions between Washington and Beijing.

Bilateral relations have long been one of key factors influencing the currency market during the past few years, and traders said the latest development dented sentiment toward the yuan.

Select Voice

Choose your listening speed

Get through articles 2x faster

1.25x

250 WPM

Slow

Average

Fast

00:0000:00

1.25x