(Bloomberg) — The yuan is a whisker away from the weak end of its onshore trading band, the latest sign that a recent slew of upbeat economic data hasn’t been enough to bolster the Chinese currency.
Most Read from Bloomberg
China’s currency slid to a four-month low against the dollar in onshore trading Tuesday and came within a few pips of the lower end of the trading range permitted by the central bank. In the more freely traded offshore market, the yuan has been hovering at a weaker level than the onshore daily limit for some eight consecutive sessions. Signs of stress are also growing in the options market.
The persistent pressure on the currency indicates that traders expect Beijing to lean on a weaker yuan to help revive growth in the absence of massive stimulus. Its task is complicated by the need to prevent disorderly capital outflows. To stabilize the market, policymakers stuck with its support for the foreign-exchange…
