Yuan weakens: The CFETS yuan index fell to 95.58—down 5.8% YTD—despite a 1.6% rise against the U.S. dollar.
Policy move: China’s central bank is holding the yuan steady vs the dollar to aid exporters amid trade tensions.
Economic context: The passive yuan decline comes amid deflation and weak domestic demand.
Risks ahead: Analysts warn a drop below 95 on the CFETS index could spark concern among Asian trade partners.
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