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Light PBOC touch makes once unlikely yuan at 7/$ seem possible
As China’s yuan slips to historically weak levels against the dollar, the central bank’s atypical light touch is spurring speculation that policymakers want to be more judicious in their intervention and have no specific target for the currency. The yuan has lost more than 2.5% against the dollar since the festering China-U.S. trade dispute took a turn for the worse with tariff increases early this month. It is now less than 0.1 yuan away from the 7-per-dollar level authorities have in the past indicated as a floor. A weakening yuan risks sparking outflows, a major concern for policymakers keen to retain investor ... (full story)