The People’s Bank of China set the daily fix 0.51 per cent weaker today, after the onshore currency rate weakened 0.6 per cent on Wednesday to its weakest level since March 2011.
The PBoC set the fix at 6.5646 per dollar, an eighth consecutive softening and the biggest such move since August, when the currency was suddenly devalued. On Wednesday the onshore exchange rate, CNY, fell to 6.5559 per dollar.
Before the fix was set, the offshore rate – China’s exchange rate outside of the mainland, which was introduced in 2010 – depreciated 0.1 per cent to 6.7040, indicating market pressure for the central bank to set the fix lower. On Wednesday the offshore rate breached 6.7 for the first time in five years, before ending the session 0.78 per cent weaker at 6.6964 per dollar.