Offshore yuan hits 2-year low against dollar

The offshore yuan sharply declined on Tuesday, briefly hitting its lowest point against the US dollar in over two years before recovering slightly.

The currency dropped as much as 0.7 per cent to 7.3695 per dollar, marking its lowest level since October 2022. As of 10:23 a.m. in London, it was 0.4 per cent weaker at 7.3416.

The drop appeared to be driven by thin trading volumes on the last day of the year, with no clear catalyst for the move.

Earlier, Chinese President Xi Jinping announced that the country’s GDP is projected to grow around 5 per cent in 2024, signalling that China’s economy is on track to meet its official target.

Attribution: Bloomberg

Subediting: Y.Yasser