BEIJING: The Chinese yuan slid in its biggest intraday loss against the US dollar in more than three months on Monday morning, after China’s central bank weakened its guidance rate for the first time since April 22.
The onshore yuan rose as much as 0.94 per cent, or 582 points, to 6.2248 against the US dollar, before closing the morning trading at 6.2181. The increase was the biggest since January 26. The offshore yuan was relatively stable, adding 0.04 per cent, or 26 basis points, to 6.2132.
China’s central bank weakened the mid-point rate, the benchmark rate for traders to trade upside or downside by 2 per cent in the spot market, for the first time in more than a week. The guidance rate was set at 6.1165, up 28 basis points from a four-month-low.
“News that the PBoC may be considering some form of unconventional easing led to initial weakness in CNY,” said ANZ economists led by Liu Li-Gang in a note on Monday. “But fixings remain in line with broad USD moves, and we continue to believe that the authorities will not use foreign exchange as an easing tool.”
