SHANGHAI: The yuan weakened to a three-month low against the dollar on Tuesday, as surprise rate cuts by China in the wake of weak data increased concern about prospects for the country’s economic growth.
The onshore yuan dropped as much as 0.47% to touch 6.7950 per dollar, the weakest level since May 16. It was changing hands at 6.7867 at midday.
“RMB sentiment was pretty fragile, as market participants perceived the PBOC’s rate cut as a bearish signal for China growth outlook,” wrote Ken Cheung, a strategist at Mizuho Bank.
