SHANGHAI; The People's Bank of China set its official midpoint rate at 6.4495 per dollar prior to the market open on Monday, its weakest level since July 2011 and 0.2 percent weaker than the previous fix of 6.4358.
Guided by a series of weaker PBOC fixes, spot yuan hit its lowest level in nearly 4-1/2 years last week, raising questions about how much the central bank intends to let it depreciate against the dollar The spot rate is allowed to trade within a range 2 percent above or below the official fixing on any given day.
The exchange, the China Foreign Exchange Trade System (CFETS), a unit of the central bank, announced after the market close on Friday that it had launched a new trade-weighted yuan exchange rate index, in a move that some traders said may suggest Beijing will allow the yuan to weaker further.
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