Yuan exchange rate hits lowest since 2007

The yuan's exchange rate against the dollar on Thursday reached its lowest level in 16 years, falling to 7.33 yuan per American. It was pressured by weak statistics from China - exports from the country continued to decline in August, before that it had been declining for three months, investing.com reports with reference to the Financial Times.

At the time of writing, the Chinese currency showed a slight increase, rising to 7.34 yuan per dollar. This year, the yuan has shown mostly negative dynamics - since January, it has lost almost 6% in total, the publication reports.

According to data released in China, the drop in exports for August amounted to 8.8% compared to the same month in 2022. Analysts had forecast a sharper decline of 9.2%, a Reuters poll showed. The figure was an improvement on July's 14.5% decline. The weak results were caused by a drop in demand outside the PRC amid high inflation, the FT notes.