The yuan traded near its lowest level in six years as the government struggles to plug loopholes in capital controls.
The exchange rate dropped by 0.05 percent to 6.7806 per dollar as of 5:15 p.m. in Shanghai, after a 0.3 percent slump Monday that was the biggest in a month. The latest data show China's foreign-exchange reserves dropped last month by the most since January while exports plunged 7.3 percent, adding pressure for further currency weakness. The yuan slid for a sixth day against a basket of peers.
Officials have stepped up measures to curb outflows as investors seek to hedge against a weakening currency and traders ascribed a higher likelihood that Hillary Clinton will become the next U.S. president. In recent weeks, China limited the use of UnionPay Co.'s cards to buy insurance products in Hong Kong, while Bloomberg News reported authorities are planning to curb transactions that use bitcoins to shift funds out of the country.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
