The US dollar is on the charge, propelled by a lift in US bond yields following the election of Donald Trump as the next president of the United States.
Like most other major currencies, the Chinese yuan is coming under renewed pressure on Friday, falling to a fresh six-year low against the US dollar.
The USD/CNY currently sits at 6.8138, having closed Thursday’s session at 6.8076.
Earlier in the session, the People’s Bank of China set the USD/CNY midpoint at 6.8115, up from 6.7885 on Thursday.
From early August last year, the US dollar has now strengthened by almost 10% against the yuan.
The USD/CNY is sensitive movements in the US dollar index, or DXY.
It traded up to 99.08 on Thursday, just shy of the highest level seen since January this year.
Other currencies across Asia are also under pressure with the Indonesian rupiah, Korean won, Thai bhat and Taiwan dollar down by 2.34%, 1.27%, 0.54% and 0.57% respectively.
The prospect of stronger US economic growth, something investors believe will be delivered under Donald Trump given his public-funded infrastructure plans, is helping to lift US bond yields, encouraging capital previously deployed in emerging markets to shift into US dollar assets.
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