The People’s Bank of China (PBoC) set the yuan’s benchmark at 7.1668 per dollar on Tuesday. According to the agency Reutersthe value represents the weakest level set for the Chinese currency since February 15, 2008, during the global financial crisis.
The measure amplified the pressure that the currency was already facing in the face of uncertainties about the second largest economy on the planet. At around 3:35 am (GMT), the dollar advanced to 7.3047 yuan in the onshore market and 7.3349 in the offshore market. In both cases, the Chinese currency was at its lowest levels in 15 years.
The move comes a day after an intense sell-off in the Asian country’s share business. Despite data indicating an acceleration of Chinese economic activity in the third quarter, investors expressed apprehension at the conclusion of the 20th Congress of the Communist Party, which provided Chinese President Xi Jinping with a third term, in an unprecedented consolidation of power.
In exchange, the weakening of the yuan is exacerbated by the growing interest rate differential with the United States, while the PBoC maintains a policy of monetary relaxation, contrary to the tightening led by the Federal Reserve (Fed, the American central bank).
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
