No red line being drawn yet on the yuan’s plunge

The yuan depreciation remains to be not discovering any agency pushback by Chinese language authorities and it seems the 6.60 degree additionally is probably not the place they really draw the road.

The offshore yuan has weakened to six.63 towards the greenback, its weakest since November 2020.

As talked about earlier than, it is a key facet to look at because it does have spillover impression to sentiment in different main currencies. Specifically, it offers a powerful tailwind for the greenback because the push continues. However including to that, I would argue that can also be a part of the explanation why the aussie and kiwi are struggling fairly badly at the moment regardless of higher danger sentiment.

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