- The yuan has fallen by nearly 4 per cent against the US dollar this month, putting it on track for what could be its biggest drop since China unified exchange rates in 1994
- The Bank of Japan on Tuesday added fuel to the fire, propelling the US dollar higher as it said it would keep interest rates ultra-low and maintain massive stimulus
China’s yuan slipped to nearly a 17-month lows against the US dollar on Thursday as widening coronavirus lockdowns put more pressure on the slowing economy, and as the US dollar continued to surge.
The Bank of Japan on Tuesday added fuel to the fire, propelling the US dollar higher as it said it would keep interest rates ultra-low and maintain massive stimulus.
The US dollar-yen pair rose to a 20-year high and the US dollar index jumped following the announcement.
The yuan’s slump followed two days of relative stability after the People’s Bank of China (PBOC) on Monday cut banks’ foreign exchange reserve requirements in a move to put a floor under recent steep falls.
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