On Tuesday, China’s yuan fell to a near 15-year low after the central bank set its lowest median value since 2008 following a sell-off in Chinese assets on Monday by global investors spooked by signs of President Xi Jinping’s growing power.
The onshore yuan opened 0.5% lower and weakened to as low as 7.3076 per dollar in early morning trading after the People’s Bank of China set the central bank rate at 7.1668 per dollar, the weakest since Feb. 15, 2008.
The offshore yuan weakened to 7.3650 per dollar, a new low.
U.S.-listed shares of Chinese companies fell on Monday after President Xi Jinping’s new leadership team raised investor concerns that ideology-driven policies will be prioritized at the expense of private sector growth.
The one-day sell-off followed losses in Hong Kong and Chinese shares as foreign investors unloaded Chinese assets on concerns about growth prospects.