Yuan Extends Slide as Stronger Fixing Bias Lends Little Support

(Bloomberg) — The yuan extended a decline, dropping 1% against the dollar as the central bank hinted at further easing, and a string of stronger-than-expected currency fixings did little to contain the slide.

The onshore yuan fell more than 1% Thursday to the weakest level since September 2020, tracking losses in the offshore yuan. The currency slid alongside regional currencies as a strong U.S. inflation report reinforced bets for aggressive Federal Reserve rate hikes. Meanwhile, People’s Bank of China (PBOC) Deputy Governor Chen Yulu said authorities worked to guide loan interest rates lower, which further weighed on the yuan.