Beijing (AFP)
The Chinese yuan has reached its lowest level against the US dollar in 15 years, driven by investor concerns.
The local yuan fell 0.6% to 7.3084 per dollar, its lowest level since December 2007, close to the lower end of the trading range set by the central bank on Tuesday.
The offshore yuan, which is traded outside mainland China, fell to 7.3735 per dollar, the weakest level since Hong Kong banks got the green light to open renminbi accounts in 2010.
The Chinese currency has suffered a setback along with other major currencies, while the Fed’s aggressive stance is pushing investors towards the dollar.
The yuan fell, along with Hong Kong-listed Chinese equities on Monday, despite reporting better-than-expected third-quarter growth on the same day.
Of greater concern are Xi’s “zero-Covid” policies, which continue to impose closures even on millions of people and factories.
Real estate sales are currently falling across the country, putting pressure on many developers while some homeowners refuse to repay mortgages for unfinished homes.
But “the market overreaction is a bit exaggerated,” State Secret Global Markets strategist Yuteng Shao told Bloomberg News.
“More detailed political plans are still to be expected in the future,” he added.
