At the end of last week, the onshore yuan ended above 6.60 against the dollar and the offshore currency continues to be battered in trading this week. USD/CNH has now risen to near 6.70 as it remains to be seen where Chinese authorities will draw the line on the yuan weakness that has been ongoing for the past few weeks:
- The yuan drop this week is one to pay attention to (20/4)
- Yuan fall not letting up towards the end of the week (22/4)
- No red line being drawn yet on the yuan's plunge (28/4)
As mentioned before, this is arguably a spot that isn't gaining enough attention considering that the market is zoomed in on the Fed. But given the scale of the weakness in the yuan, it is worth noting as it does affect risk, emerging markets, and the dollar in general.