The Chinese currency hovered within inches of the Rmb 7 mark against the dollar as markets closed on Friday, suggesting Beijing has not done enough to restore confidence despite a flurry of market-boosting policies in recent weeks.
Onshore trading sent the renminbi down a further 0.22% during Friday morning trading, falling to Rmb 6.9644 to the dollar – the weakest rate since the 2008 financial crash, according to the Financial Times.
Market’s were unnerved when the central bank set the daily midpoint, which determines the 4% margin the onshore rate can move between, at the lowest in almost two years.
Data released Thursday also showed that Chinese companies are looking more and more for safety in foreign currencies. Banks sold a net $17.6 billion of foreign currencies in September, the most since the middle of last year, according to the State Administration of Foreign Exchange.