The Chinese yuan is under pressure

The Chinese yuan is on the defensive in Asia.

Offshore traded yuan, or USD/CNH, broke above the 6.50 level in recent trade, leaving it that the highest level since January 11.

It currently trades at .6.4964.

Investing.comUSD/CNY Hourly Chart

CNH is predominantly traded in Hong Kong. A higher USD/CNH rate indicates that the US dollar is strengthening against the yuan.

Coinciding with the move, one and three-month Hong Kong Interbank Offered Rates, or HIBOR, both hit the highest level since 2008.

HIBOR is the benchmark interest rate that Hong Kong banks lend to each other in local currency.

Onshore traded yuan, or USD/CNY, is also pushing higher, touching 6.4935 in recent trade, also the highest level since mid-January.

Along with a stronger US dollar, the yuan has been under pressure due to divergent monetary policy settings between China and the US as well as trade tensions between the two nations.

The weakness in the yuan has also weighed upon other currencies across the Asian region.

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