The yuan fell to a seven-month low against the U.S. dollar late last month, as analysts say several factors continue to put downward pressure on China’s currency.
On June 21, the offshore yuan to U.S. dollar exchange rate fell to 7.27:1, a seven-month low. The slide was in part due to a weaker-than-expected spot fixing rate set by the People’s Bank of China (PBOC), fueling speculation the authorities may allow the yuan to depreciate further. So far this year, the yuan has fallen more than 2 percent against the dollar.
