The Chinese yuan slumped on Thursday against the world's reserve currency, plunging to its lowest rate in more than 12 months against the greenback, according to Bloomberg.
The monetary unit of the globe's second-largest economy fell after the central bank of the Asian nation reduced the daily exchange by 0.18 percent, the same cut that the body implemented on March 10. The yuan has struggled this year against the U.S. dollar – thus far in March the renminbi has dropped about 1.12 percent; in February the currency fell 1.38 percent against its cross-Pacific rival.
"We are seeing dollar short-covering from a variety of investors in the onshore market," a trader with a European bank in Hong Kong told Reuters on Thursday.
The yuan fell about 0.29 percent against the U.S. dollar and scraped its lowest value since early March of last year against its rival monetary unit.
The Thursday performance of the Chinese yuan also was impacted by mounting speculation about the U.S. Federal Reserve reducing interest rates, according to Reuters. The body's policy-making arm opted to cut stimulus measures on Wednesday.
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