Yuan at 5-month low amid weak statistics

SHANGHAI, May 18 (Reuters) – The yuan weakened against the dollar to its lowest level since December on Thursday as a series of economic data suggesting a slow economic recovery in China weighed on investor sentiment.

Before the opening of the session, the Central Bank of China announced the median fixed exchange rate of the yuan at 6.9967 to the dollar, weaker than the previous value of 6.9748.

Maybank analysts did not see a clear signal of the central bank’s monetary policy in setting the interest rate at this level, which turned out to be 34 points weaker than their expectations.

The yuan in the mainland market at 08:57 Moscow time fell 0.23% to 7.0139.

Wing Ting of Brown Brothers Harriman noted that the weakening of the yuan continued amid disappointing data, which in turn increased expectations for an easing of monetary policy in China.

The dollar index against a basket of six major currencies changed little around 102.959, while the Chinese currency fell 0.32% overseas to 7.0303 yuan to the dollar.

The original message in English is available under the code: (Reuters Shanghai, translated by Tomasz Kanik)


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