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.
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