China’s offshore yuan hits all-time low against U.S. dollar
China’s offshore yuan, which is traded outside of mainland China, reached its lowest level against the U.S. dollar since its inception in 2010. It fell below the 7.35 level early in the morning and traded at 7.3599 yuan per dollar. However, the currency later recovered slightly and traded at 7.513 yuan against the dollar.
Meanwhile, China’s onshore yuan, which is traded on the mainland, also reached a 16-year high, trading at 7.3417 against the dollar.
This depreciation of the yuan comes amidst ongoing trade tensions between the United States and China. The weakening yuan makes Chinese exports more competitive on the global market, potentially offsetting some of the impact of tariffs imposed by the United States.
Analysts suggest that the depreciation is also a result of market speculation and capital outflows. The Chinese government has implemented measures in the past to stabilize the yuan and prevent excessive depreciation or appreciation.
Experts will closely monitor the yuan’s performance in the coming weeks as the trade dispute between the United States and China continues to escalate.