SHANGHAI: China’s yuan fell against the dollar on Monday after the central bank set a weaker midpoint to reflect dollar strength on rising expectations of a US interest rate hike this month.
“Dollar demand in the market was higher than supply as investors expected the dollar to strengthen further,” said a trader at a Chinese commercial bank in Shanghai.
The People’s Bank of China (PBOC) set the midpoint rate at 6.3985 per dollar prior to market open, 0.21 per cent weaker than the previous fix 6.3851, the lowest since late August.
The spot market opened at 6.4021 per dollar and was changing hands at 6.4085 at midday, 0.1 per cent weaker than the previous close.
