China’s Offshore Yuan Slides to Brink of Record Amid Tension
- Currency slumps as tension with U.S. worsens over Hong Kong
- History shows depreciation is often quick when PBOC allows it
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China’s offshore yuan tested the weakest level on record on speculation the government would be willing to permit a weaker currency in response to fresh punitive measures from the U.S.
The offshore rate dropped as much as 0.7% to 7.1965 per dollar on Wednesday, the lowest since Sept. 3 2019, when it reached an all-time low. Losses have steepened in recent weeks as the Trump administration stepped up rhetoric against China’s Communist Party over its handling of the coronavirus -- and its intention to crack down on dissent in Hong Kong.