“The yuan is set to slide past 7 per dollar with scarcely a murmur as a range of metrics show the currency would still be relatively expensive against its non-dollar peers,” Bloomberg reports, citing analysts.
Additional quotes
“The authorities will allow the currency to weaken past that key psychological barrier and merely seek to prevent a rapid decline that may cascade into a disorderly selloff.”
“While allowing the yuan to slide beyond 7, the central bank may continue “to warn off aggressive yuan bears via explicit communication and implicit interventions.”
“Economists are also watching to see whether its slide deters the PBOC from further easing policy to support a slowing economy.”
Related reads
- USD/CNH renews two-year top near 6.9400 on downbeat China data
- China's Caixin/ S&P Global Services PMI drops to 55.0 in August vs. 55.5 previous
