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China sets yuan midpoint below 6.7 yuan/dollar
October 10, 2016 / 1:42 AM / a year ago

China sets yuan midpoint below 6.7 yuan/dollar

SHANGHAI, Oct 10 (Reuters) - China’s central bank on Monday set the midpoint for the yuan currency weaker than the psychological 6.7 yuan per dollar level after a week-long national holiday during which offshore yuan touched nine-month lows against the dollar.

The People’s Bank of China put the midpoint at 6.7008 yuan per dollar. It was the weakest midpoint since September 2010. The currency is allowed to trade in a band of 2 percent on either side of the midpoint, which is set each day.

The spot rate quickly followed suit, dipping below 6.7 for the first time since July.

On Friday the offshore yuan slumped to its lowest rate against the dollar since Jan. 7.

In the weeks before onshore markets closed for the National Day holiday from Oct. 1-9 the spot rate flirted with 6.7. The last close was at 6.6745.

On Oct. 1 the yuan was officially added to the basket of currencies that determines the exchange rate of the International Monetary Fund’s synthetic reserve currency, the Special Drawing Right, or SDR. (Reporting by John Ruwitch and Winni Zhou; Editing by Eric Meijer)

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