If the People’s Bank of China sets a softer dollar rate for the renminbi on Monday it will mark a record run of weakening and be a further sign that Beijing is increasingly measuring its currency’s performance not against the US but a broader range of its peers.
China’s central bank has “fixed” the renminbi at a lower rate against the dollar for each of the past 10 trading days, weakening its currency at a faster pace over that period than at any time since it first allowed it to appreciate in 2005. Over the past fortnight the renminbi has lost 1.5 per cent against the US currency.
Analysts said that although the straight-line direction was unusual for Beijing, it reflected a well-telegraphed desire by the People’s Bank of China to show it was not overly focused on the dollar.