SHANGHAI: China’s yuan hovered at a near 15-year low on Thursday, tracking broad dollar strength after US Federal Reserve Chair Jerome Powell signalled US rates would likely rise further than expected, dashing market hopes for a change in tone.

The Fed raised its benchmark funds rate by 75 basis points as widely expected, but said its battle against inflation will require borrowing costs to rise further.

The strengthening dollar pressured the yuan’s guidance fix and spot trades.

Prior to the market opening, the People’s Bank of China (PBOC) set the midpoint rate at 7.2472 per dollar, 275 pips or 0.28% weaker than the previous fix 7.2197, and the softest since Jan. 22, 2008.