Brexit Triggers Yuan Weakness

Turmoil triggered by Brexit may have masked a more troubling market move — China’s currency is falling again.

Since British voters’ shock decision to leave the European Union, the yuan has lost 1.3% against the dollar.

That’s small compared with the 12% plunge in the British pound since the EU referendum, but it contributed to the yuan’s biggest quarterly loss on record against the dollar — down nearly 3% in the three months to June 30.

The yuan was trading around 6.67 to the dollar on Tuesday, its lowest level since December 2010.

China still tries to manage its currency, and significant moves in the past year have roiled global markets. Investors are watching warily.

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza