Onshore and offshore yuan hit multi-month lows against the US dollar as Donald Trump's re-election as US president heightened concerns about broader trade tensions and punctured China's currency's previous strength. It fell to
As of Tuesday morning, the offshore yuan had fallen by about 0.39% to 7.3148 yuan to the dollar, below the benchmark of 7.3 yuan.
Meanwhile, the onshore yuan fell to 7.2975 yuan to the dollar on Tuesday, its lowest since November last year.
“The continued depreciation of the renminbi reflects a combination of factors, including a strong dollar, capital outflows, and tariff expectations,” Everbright Securities said in a research note on Tuesday.
Everbright Securities added that as the effects of the policy wear off, both the renminbi and government bond yields tend to return to their pre-stimulus patterns.
