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China puts the yuan's midpoint at its weakest level since 2008



China's central bank set the daily midpoint of the yuan at its weakest level since 2008 early Thursday.

People's Bank of China set the yuan

CNYUSD, + 0.2286%

reference point at 739 against a US dollar, according to Dow Jones Newswires. The bank allows the yuan to swing up to 2% higher or lower than this level.

Reuters reported that it was the weakest midpoint since April 21, 2008, and also the first time since 2008 that the midpoint has been weaker than 7 per cent. dollar. The yuan's midpoint was set at $ 6,996 per dollar on Wednesday.

Read: Why & # 39; the tail risk of a currency war cannot be ruled out & # 39; as tensions between the United States and China

did not try to start a full currency war. Asian markets and US futures were largely unmoved by Thursday's move.

A weakening of the yuan below the critical 7 level on Monday sent global markets collapsing in fear that it was the first step in a currency war. A weaker yuan makes China's exports cheaper and damages foreign competition.

On Monday, the US Treasury Department marked a currency manipulator for the first time since 1

994.


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