Yuan opens weaker after record drop in forex reserves

China’s yuan fell at the open on Tuesday after official data the previous day showed that China’s foreign exchange reserves dropped by a record $93.9 billion in August.

The People’s Bank of China set the midpoint rate CNY=SAEC at 6.3639 per dollar prior to market open, weaker than the previous fix of 6.3584, and firmer than the previous day’s closing quote 6.3659.

The spot market CNY=CFXS opened at 6.3730 per dollar and was changing hands at 6.3673 in early trade, 14 pips away from the previous close and 0.05 percent away from the midpoint. The spot rate is currently allowed to trade with a range 2 percent above or below the official fixing on any given day.

The offshore yuan was trading 1.92 percent below the onshore spot at 6.492 per dollar.

Source: Reuters