The Chinese yuan continues to weaken, hitting a fresh 6-year low against the US dollar

Photo: Chip Somodevilla/ Getty Images.

The People’s Bank of China (PBOC) has just set its USD/CNY fixing rate at a 6-year low. Again.

The PBOC set the yuan’s mid-point at 6.7379, weaker than previous fix of 6.7157 and the last traded price of 6.7271 on Friday.

The weakness in the yuan is a reflection of US dollar strength. The US dollar index — heavily influenced by movements in the euro and Japanese yen — has jumped more than 2.8% so far in October, leaving it at the highest level seen since mid-March.

Over the same period, the US dollar has strengthened by 1% against the yuan.

In early trade in Asia, the USD/CNY currently sits at 6.732, the highest level seen since September 2010.

Year-to-date the US dollar has gained 3.7% against the yuan.

USD/CNY Daily Chart. Source: Thomson Reuters

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