USD/CNY: Yuan hits fresh 8-year lows, PBOC intervention on cards?

The Chinese yuan extends its downward trajectory versus the American dollar on Tuesday, hitting the weakest levels since December 2008, despite a slight retreat in the greenback across the board.

The yuan remains under pressure and broke through 6.86 against the buck, as markets believe that the PBOC is less likely to intervene this time, in a bid to stall the ongoing downward spiral in the Chinese currency.

While the rise in USD on the back of potential Trump’s policies-led optimism continues to weigh heavily on the USD/CNY pair. Yuan is down more-than 5% per USD so far this year.

In the spot market, the yuan opened at 6.8453 per dollar and was changing hands at 6.8633 at midday, nearly 200 pips away from the previous late session close.