Posted 3/22/2024, 5:16:36 AM
China Allows Yuan to Weaken Past 7.2 per Dollar as Dollar Strengthens
- Chinese authorities appear to be loosening their tight grip on the yuan, allowing it to weaken
- The onshore yuan fell beyond 7.2 per dollar on Friday, sending ripples across Asian markets
- The trigger was the central bank setting a much weaker daily reference rate for the managed currency
- This signals the central bank is willing to allow some yuan weakness as the dollar strengthens
- Further yuan declines may spur additional central bank support like dollar sales or verbal intervention
