China sets yuan mid-point at fresh low in two and a half months

[SHANGHAI] China's central bank lowered its official yuan midpoint to a fresh low in two and a half months at 6.7614 per dollar on Tuesday, dragged by the sharp losses in the spot yuan a day earlier.

Tuesday's midpoint was 270 pips, or 0.4 per cent, weaker than the previous fix of 6.7344 and was the softest since Feb 19.

The move in the official guidance rate was also the biggest one-day weakening in percentage terms since Feb 11.

Chinese investors, caught off guard by US President Donald Trump's tariff threats, dumped stocks and sold the yuan currency on Monday as a fresh deterioration in Sino-US trade tensions roiled Asian financial markets.

REUTERS