Reported 11 months ago
The Chinese yuan is nearing the lower edge of its trading range against the US dollar, causing disruptions in certain currency transactions with shorter settlement periods. This has led to a halt in overnight swaps due to the implied yuan price falling outside the permitted daily band. Concerns over yuan depreciation pressure are rising as the currency trades at a seven-month low, prompting the People’s Bank of China to manage the decline cautiously to avoid capital outflows and maintain stability. The weakening yuan reflects a decline in sentiment towards China's economy, as investors turn to havens amidst a bond market rally and expectations of further monetary stimulus.
Source: YAHOO