China’s Yuan weakens; market shrugs off “Bond Connect”
China’s Yuan weakened against the US dollar after a softer official fixing on Monday, snapping the currency’s four-day winning streak, while the launch of a bond trading scheme between China and Hong Kong had little impact on the market.
The “Bond Connect” programme between China and Hong Kong kicked off on Monday, linking China’s US$9 trillion bond market with overseas investors. But the launch had little immediate impact although some analysts said the programme would offer support for the Chinese currency in the long run.
The People’s Bank of China set the midpoint rate at 6.7772 per US dollar prior to market open, weaker than the previous fix at 6.7744.