HONG KONG: China’s yuan edged down against the dollar on Tuesday, after the central bank fixed a weaker midpoint for the third consecutive day to reflect global strength in the dollar.
The People’s Bank of China set the midpoint rate at 6.1543 per dollar prior to market open, weaker than the previous fix of 6.1513. It was the lowest level since Nov 6. Spot yuan opened at 6.2763 per dollar and was changing hands at 6.2754 near
midday, 24 weaker than the previous close and 1.97 per cent weaker than the midpoint.
The currency fell to its lowest since October 2012 on Monday after the central bank cut interest rates during the weekend to support the slowing economy. More easing measures are expected in coming quarters.
The yuan’s depreciation pressure comes from strength in the US dollar, less willingness to sell dollars and more short-selling of the yuan in the offshore market, analysts at China’s Guangfa Bank said in a note
