Chinese renminbi hits 7-month low due to weak PBOC guidance
The Chinese renminbi eased to a fresh seven-month low against the dollar on Tuesday, signaling its sixth consecutive monthly decline as the central bank, the People’s Bank of China (PBOC), continued to set weaker official fixings.
Despite the overnight retreat of the US dollar, the Chinese renminbi remained close to the lower end of its daily trading band, driven by capital outflows and speculation that the central bank might allow further depreciation.
Read more to find out why the Chinese renminbi is weakening.
Disclaimer:
Investors should closely monitor economic data this week for further insights into the trajectory of the Chinese renminbi. For a clearer picture, key indicators include the US PCE inflation data, China’s May industrial profits due on Friday, and the June manufacturing survey set for release on Sunday.
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