Chinese yuan on Monday touched a 6-year low against US dollar as China permitted a gradual devaluation of its currency to boost the value of the sagging export earnings.
The central parity rate of the Chinese currency yuan, weakened 132 basis points to 6.7690 against the US dollar, as per the China Foreign Exchange Trade System. It was the weakest level since September 2010 as increased market expectations for an interest rate hike in the US led to a stronger dollar. In China’s spot foreign exchange market, the yuan is allowed to rise or fall by two per cent from the central parity rate each trading day.