Chinese yuan hits eight-month low as commodities currencies continue slide
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China's yuan slipped to its lowest point in more than eight months on Wednesday as commodities-linked currencies broadly lost further ground on a bleak outlook for Chinese demand. Funding conditions remained tight offshore, however, making it costly for investors to short the yuan and limiting yuan losses, market participants said. The yuan was 0.01 per cent lower at 7.2756 to the dollar. Over the past two weeks, China-linked currencies have tracked a pullback in commodity prices while the U.S. dollar has also been supported as traders wait on crucial growth and inflation readings for the U.S. economy. The People's Bank of China set the midpoint rate at 7.1358 per dollar, its weakest since November 2023. The central bank has been gradually lowering its daily yuan official guidance with a bias suggesting it is allowing some depreciation. The yuan is down 0.1 per cent against the dollar this month, and 2.4 per cent weaker this year. BofA Securities analysts said China's rate cuts this week were a concession that monetary easing is needed to support growth. Offshore yuan traded at 7.287 yuan per dollar, up about 0.03 per cent in Asian trade. The dollar's index was flat at 104.48.

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https://www.nst.com.my/business/economy/2024/07/1080912/chinese-yuan-hits-eight-month-low-commodities-currencies-continue