Yuan touches fresh 5-year low

Baku. 5 July. REPORT.AZ/ People’s Bank of China closed yuan at 6.6636 per US dollar. Report informs, this is a fresh low in five and a half years since December 2010. 

According to the forecasts of experts joining the survey of The South China Morning Post, further yuan weakness throughout 2016. The currency will depreciate this year as Brexit heightens global economic uncertainty.

“I expect that China will face additional economic headwinds from the Brexit fallout, so we should expect further yuan weakness throughout 2016,” said Stephen Innes, senior trader for Oanda Asia Pacific.

Larry Hu, an analyst for Macquarie Securities, said the PBOC might want to leverage Brexit as an opportunity to guide the yuan lower in an effort to boost exports.