Yuan Falls to Lowest Level Since 2008 on Hawkish Fed and Growth Risks

(Bloomberg) — The onshore yuan fell to the weakest level in 14 years as the dollar strengthened on hawkish comments from a Federal Reserve member and as Covid-led lockdowns in parts of Xi’an intensified concerns about growth.

The Chinese currency slumped to 7.2525 per dollar, the lowest since January 2008. That’s after the U.S. currency rose following Philadelphia Fed President Patrick Harker’s comment that the central bank is likely to raise interest rates to “well above” 4% this year and hold them at restrictive levels to combat inflation.