China's yuan hits weakest in more than 5 years after PBOC fix, MSCI disappointment

[SHANGHAI] China's yuan slumped to its weakest level in more than five years against the dollar at Wednesday's open, after the central bank set its official midpoint at its lowest level since January 2011.

The yuan hit an intraday low of 6.6047 per dollar in early trade against Tuesday's close of 6.5966.

China's central bank on Wednesday set its yuan/dollar midpoint rate at 6.6001 prior to the market opening after the yuan had tumbled in late Tuesday trading.

US index provider MSCI Inc on Tuesday declined to add domestic Chinese stocks to one of its key benchmarks, concluding that Beijing had more work to do in liberalising capital markets and delivering a blow to Chinese policymakers hoping to broaden the appeal of their currency.

Wednesday's midpoint weakened 0.32 per cent from the previous day's fix of 6.5791 per dollar, but wasn't far off the overnight spot yuan close at 6.5966, which had partially factored in the MSCI decision.

REUTERS