USD/CNY: Yuan hits fresh 8-1/2 yr lows as Yellen boosts USD
The Chinese currency fell to its lowest levels in more-than eight years versus the American dollar on Friday, after the PBOC weakened the local currency for the eleventh straight session, in response to the overnight rise in the greenback across the board, backed by Fed Chair Yellen’s comments.
Yellen noted that a rate hike relatively sooner is appropriate, almost confirming a Dec rate increase, which sent the US treasury yields through the roof.
PBOC set USD/CNY mid-point at 6.8796 vs 6.8692, lowering the yuan for the 10th consecutive day, although fixed its below yesterday’s close of 6.8761.
The spot market opened at 6.8890 per dollar and was last seen changing hands at 6.8890 at midday, 170 pips weaker than the previous late session close and moved-off multi-year lows of 6.8926.