USD/CNY: PBOC weakens Yuan further, hits new 8-1/2 yr highs

The USD/CNY pair rallied to the strongest level in more-than eight years on Monday, after the Chinese central bank, the PBOC, continued to weaken the Yuan for the twelfth straight session.

The PBOC cut its daily fixing by 0.27% to 6.8985 Monday. Meanwhile, according to the latest Bloomberg survey, the Chinese currency will weaken to 7 per dollar in H1 2017, hitting the levels unseen since before the global financial crisis.

The spot market opened at 6.8859 against greenback and was last seen changing hands at 6.8988 at midday, having retraced from above 6.9053 – fresh multi-year tops.