The value of the Chinese yuan fell against the US dollar
On Friday, the value of the Chinese yuan reached its lowest level against the US dollar in four months, prompting state banks to intervene to defend the national currency.
In the spot market, the yuan fell below the critical psychological level of 7.2 against the dollar in China’s domestic market, reaching its lowest level since November 17, 2023, at 7.24.
The value of the yuan has decreased by more than 2% over the past three months. The pressure on the yuan is due to increasing market expectations for further monetary policy easing to support the world’s second-largest economy, as well as the weakening of the Japanese yen.