The daily reference rate sets the permissible trading range for the yuan, and the currency’s depreciation brings it close to the extreme end of this band. This position is a level not witnessed since October 2022, highlighting the financial strain resulting from both domestic property challenges and international currency dynamics.
The weakening trend of the yuan underscores the impact of China’s real estate troubles on its financial market. The currency’s depreciation is also indicative of the strength of the dollar in international markets, further pressuring the Chinese economy.
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