The Chinese yuan depreciated today, falling to the lowest level in five years, as the People’s Bank of China lowered its reference rate, prompting speculations among market participants that China is going to renew currency wars.
The PBoC cut its daily fixing by 0.22 percent to 6.5314 per dollar today. The move obviously made the yuan weaker while the poor economic data from China also contributed to the weakness of the currency. Additionally, the risk-negative sentiment, caused by the reports of a nuclear bomb test by North Korea, was hurting riskier currencies.
USD/CNY advanced from 6.5224 to 6.5549 as of 11:42 GMT today, hitting the high of 6.5761 intraday.
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