China’s Yuan Ends at 28-month Low Despite Fresh Policy Step, Nears Daily Lower Limit

China’s Yuan Ends at 28-month Low Despite Fresh Policy Step, Nears Daily Lower Limit
A clerk counts stacks of Chinese yuan and U.S. dollars at a bank in Shanghai on July 22, 2005. China Photos/Getty Images
Reuters
Updated:

SHANGHAI—China’s yuan finished domestic trading session at a new 28-month low against the dollar on Monday, near its downside trading limit, despite the central bank taking steps to rein in the currency’s weakness.

The People’s Bank of China (PBOC) said it would raise the foreign exchange risk reserves for financial institutions when purchasing FX through currency forwards to 20 percent from zero starting on Sept. 28.