Yuan Drags Asian Currencies as China’s Spending Plans Disappoint
- A closely watched briefing on Tuesday morning had few details
- Analysts eye more yuan declines, possible return of short bets
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China’s onshore yuan had its worst day in more than a year after a week-long break, fueling a broader weakening among Asian currencies as traders rolled back bets on the world’s second-largest economy.
The onshore yuan dropped as much as 0.9% against the greenback on Tuesday, its worst performance since June 2023, knocking sentiment for currencies including the Australian dollar and the South Korean won. The decline in the onshore yuan was in part a catch-up trade after the Golden Week holiday in mainland China; the offshore yuan lost more than 1% of its value during the break.