UJSD/CNY hits fresh 4-week highs, Yuan fix at 1-year lows

The Chinese yuan fell four-week low against its American counterpart on Monday, after the PBOC set the daily Yuan reference rate at the lowest levels in over a year.

The PBOC has set the Yuan’s daily reference rate at 6.6652, down 441 bps or 0.67%, which is the biggest cut the central bank has made since August 11 last year, when it cut the level by almost 2%, South China post noted.

Jasper Lo Cho-yan, chief executive of King International Financial, noted “There were reports on Friday showing the mainland debt problems could get worse. This has hurt the yuan and added more falling pressure to the currency.”

Lo added, “a US interest rate rise could also lead the yuan lower, with market watchers were keeping a close eye on the global central banking conference in Jackson Hole Symposium, being held by the Federal Reserve this week.”