SHANGHAI: China’s yuan slipped to a two-week low against the dollar as weak domestic credit data reinforced the need for more policy support while the threat of new US tariffs on the world’s second-biggest economy sapped confidence.
New bank lending in China fell more than expected in April from the previous month while broad credit growth hit a record low, the central bank said on Saturday.
The Chinese yuan has lost 1.9% of its value against the dollar this year, and remains vulnerable in the face of a shaky economic recovery as well as policy and geopolitical challenges.
Prior to the market’s opening, the People’s Bank of China set the midpoint rate, around which the yuan is allowed to trade in a 2% band, at 7.103 per dollar, the weakest level since April 30.
The spot yuan opened at 7.2274 per dollar and was changing hands at 7.2338 at midday, 68 pips weaker than the previous late session close and 1.84% away from the midpoint.
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