Yuan hits 28-month low against US dollar

The renminbi fell 0.17% on Friday to RMB6.269 per US dollar after the central bank weakened the currency’s fixed mid-rate by 0.16% during its daily adjustment, The Financial Times reported. The decline, the largest downward move in a month and which marked a 28-month low, continues to pressure Chinese firms that borrowed in US dollars on the expectation they would benefit from paying back their debt using an appreciating domestic currency. As the dollar rises mainland companies are paying down dollar debt to avoid incurring a loss, in turn further boosting demand for the US currency.