Yuan under pressure amid robust dollar and China’s real estate woes
2023.09.26 01:16
© Reuters.
The is displaying signs of considerable strain, edging towards the boundary of its 2% fixed trading band against the dollar. This movement reflects the mounting pressures from a robust dollar and escalating real estate difficulties in China. The currency has depreciated over 1.9% from its daily reference rate this week, marking a significant decrease in value.
The daily reference rate sets the permissible trading range for the yuan, and the currency’s depreciation brings it close to the extreme end of this band. This position is a level not witnessed since October 2022, highlighting the financial strain resulting from both domestic property challenges and international currency dynamics.
The weakening trend of the yuan underscores the impact of China’s real estate troubles on its financial market. The currency’s depreciation is also indicative of the strength of the dollar in international markets, further pressuring the Chinese economy.
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