Dollar strength drives yuan to lowest level in a decade
Higher US rates are narrowing interest rate differential as Chinese growth weakens
The strength of the dollar took the yuan to its lowest level against the greenback in over a decade on October 30.
The higher rates implemented by the Federal Reserve are narrowing the rate differential between Chinese debt and US Treasuries. This is a key driver of the yuan’s weakness, according to analysts.
The People’s Bank of China establishes a daily band for the dollar against the yuan in the Chinese domestic market. On October 30, it placed the upper limit of the band at 6.9574, the
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