Yuan weakens despite People’s Bank of China fixing currency higher
Decline against US dollar extends to fourth day
The yuan pulled back after a strong opening on Monday as the People’s Bank of China (PBOC) set the daily fixing higher.
Onshore yuan traded in Shanghai dropped 0.13 per cent to 6.5055 against the US dollar at 5.05pm on Monday. The currency strengthened to an intraday high of 6.4951 earlier before weakening in late trading, extending its decline for a fourth consecutive day.
In intraday trade on Thursday the rate touched 6.5092, the lowest for a month. The yuan was down 0.36 per cent last week, its biggest weekly fall in three weeks.
Offshore yuan in Hong Kong traded at 6.4950 per US dollar in early trade on Monday morning before sliding 0.08 per cent to 6.5192 per US dollar by 5.05pm. The currency last week fell by 0.44 per cent, its biggest weekly decline in six weeks.
Jasper Lo, the chief executive of King International Financial, said the yuan strengthened on Monday morning because the US dollar weakened against the other currencies since Friday.
“The US jobs data released last Friday was worst than expected which has led to a fall of the US dollar. This, added together with the PBOC set the yuan fixing stronger on Monday morning, has led the yuan to rise this morning,” Lo said.
