Yuan eases to 2-week low on weaker midpoint fixing, virus concerns

Yuan eases to 2-week low on weaker midpoint fixing, virus concerns

19 Feb 2020 12:03 PM
 

China's yuan eased to a two-week low on Wednesday after the central bank set its official midpoint weaker than a key threshold for the first time in nearly two months.

Investors also remained cautious as the death toll from the coronavirus epidemic passed 2,000, though the number of new cases fell for a second straight day.

Prior to the market opening on Wednesday, the People's Bank of China (PBOC) set the midpoint rate at 7.0012 per dollar, 186 pips or 0.27% weaker than the previous fix of 6.9826.

It was the first time the PBOC has set the official guidance rate below the closely watched 7 per dollar level this year, and the level was the weakest since Dec. 25.

The much weaker fixing quickly dragged the offshore yuan lower before onshore trading opened. Onshore, spot yuan opened at 7.0051 per dollar and eased to a low of 7.0028, its weakest level since Feb. 4.