China’s Yuan weakens past key level with no intervention seen

Chinese yuan. (Bloomberg pic)

HONG KONG: The yuan depreciated past a level where analysts had expected the authorities to intervene, suggesting the world’s worst-performing currency has further to fall.

The yuan dropped 0.7% to 6.7137 per dollar at 9:49 a.m. in Shanghai. A Bloomberg survey last week found observers thought the People’s Bank of China would act to slow the descent at 6.7. The offshore exchange rate extended its worst day since January 2017, sliding 0.6% to 6.7267.

China’s currency has fallen about 4% against the greenback since June 14, the most among 31 major currencies tracked by Bloomberg. The continued declines will feed speculation officials are effectively depreciating the yuan to defend against the effects of trade tariffs.