The offshore yuan plunged beyond 7 per dollar for the first time since 2008 amid speculation Beijing was allowing currency depreciation to counter President Donald Trump’s latest tariff threat
The offshore exchange rate tumbled 1.6% to 7.0884 a dollar at 10:36 a.m. after the People’s Bank of China set its daily reference rate at a weaker level than 6.9 for the first time since December. Earlier, it sank as much as 1.9% to a record low of 7.1132
“Now that 7.0 has been broken both onshore and offshore, it may be deemed to be part of the response to the new tariffs,” said Christy Tan, head of markets strategy at National Australia Bank Ltd. in Singapore. “The authorities may only step in to manage if it gets disorderly, such as a sustained spike in volatility, herd behavior across spot, forward, option trading and so on.”
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