Yuan Renminbi Falls to 5 Years Low Against US Dollar

Chinese  Yuan fell beyond 6.7 per dollar for the first time in more than five and half years as weak property prices data released and a strong US dollar.  The Yuan touched 6.6961 on Monday morning according to the China Foreign Exchange Trading System. Currently the pair is trading at 6.713.

The 6.7 Yuan per dollar rate is the lowest since October 2010 and was set by Chinese central bank as reference rate.

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US dollar strength following failed coup attempt in Turkey combined with Official new home prices data released on Monday showed rising prices in June compared with a month earlier fueled the pair below 6.7 technical level.

“State banks were quite firm in defending the yuan at 6.6990 before the official close, but since they get off work after 4:30 pm the rates fluctuated more wildly and hit 6.7,” said a trader at a Chinese commercial bank in Shanghai.

It is expected that Beijing policy makers will not allow further depreciation of the Yuan against US dollar.