(Reuters) – China’s yuan finished domestic trading on Monday at a one-year low against the dollar, extending losses after posting its worst week since 2015, as a worsening economic growth outlook drove investor concern that the currency had more room to fall.
Sentiment also took a knock on fears that strict lockdown measures will spread to Beijing, after the capital city required everyone living or working in Chaoyang district to take three COVID-19 tests this week and put more than a dozen buildings under lockdown.
“The lack of any intervention by the PBOC despite the elevated downside volatility in CNY may signal that China could be shifting to a more growth-orientated currency management at a time when tight containment measures are posing significant risks to the country’s economic outlook,” ING said in a note