October 30, 2018 / 1:50 AM / a year ago

China sets yuan mid-point at weakest level since 2008

FILE PHOTO: A China yuan note is seen in this illustration photo May 31, 2017. REUTERS/Thomas White/Illustration/File Photo

SHANGHAI (Reuters) - China’s central bank set its official yuan midpoint to the lowest level in over a decade on Tuesday, as the local currency remained on the back foot on worries over slower growth at home and talk of further falls in coming months.

The official yuan midpoint CNY=PBOC was fixed at 6.9574 per dollar on Tuesday, 197 pips, or 0.28 percent, weaker than the previous fix of 6.9377.

The lower fix came as the dollar .DXY firmed against its rivals, supported by a safe haven bid amid fresh Sino-U.S. trade worries. [FRX/]

Bloomberg reported that the U.S. is preparing to announce tariffs on all remaining Chinese imports by early December if talks next month between presidents Donald Trump and Xi Jinping falter.

Tuesday’s fixing, guided at the lowest level since May 21, 2008, was also weaker than market forecasts. It was 74 pips softer than a Reuters estimate at 6.9487 per dollar.

On Monday, the yuan CNY=CFXS finished domestic trade at its weakest in over a decade, stirring speculation over whether the central bank will tolerate a slide beyond the key level of 7 per dollar.

Reporting by Winni Zhou and John Ruwitch; Editing by Shri Navaratnam

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