China’s yuan reversed gains and touched the weakest level in 16 months after a private report showed the nation’s factory output is still contracting.
A preliminary reading for the Purchasing Managers’ Index for manufacturing was at 48.3 in April, up from a final 48 in March, HSBC Holdings Plc and Markit Economics reported today. The figure, which was below the dividing line of between expansion and contraction, matched the median estimate in a Bloomberg News survey of economists.
The yuan declined 0.08 percent to 6.2427 per dollar as of 10:33 a.m. in Shanghai, China Foreign Exchange Trading System prices show. It touched 6.2465 earlier today, the weakest level since Dec. 14, 2012. The currency is down 3 percent in 2014, the worst performance in Asia, after gaining for a fourth straight year in 2013.