China's yuan fell to its lowest level in nearly eight years and on Tuesday as the dollar climbed on expectations of higher interest rates under President-elect Donald Trump. The yuan broke through 6.86 per dollar in morning trade, its weakest since December 2008 and taking its losses so far this year to more than 5 percent.
The People's Bank of China set the midpoint rate at 6.8495 per dollar prior to the market open, weaker than the previous fix 6.8291. In the spot market, the yuan opened at 6.8453 per dollar and was changing hands at 6.8596 at midday, 144 pips away from the previous late session close and 0.15 percent away from the midpoint. In offshore markets, the yuan was trading 0.09 percent away from the onshore spot at 6.8657 per dollar. One-year NDFs are settled against the midpoint, not the spot rate.