SHANGHAI - China on Tuesday weakened the yuan’s fix against the US dollar to a nearly eight-year low as the surging dollar put further pressure on the unit. China only allows the yuan to rise or fall 2% on either side of the daily fix, one of the ways it maintains control over the currency. One analyst said Beijing might intervene to keep the unit from dropping further. The onshore yuan was quoted at 6.8425 on Tuesday morning, down 0.02 percent from Monday's close of 6.8409, according to the Foreign Exchange Trade System. In August last year, Beijing suddenly devalued the yuan, causing investors to dump the unit in volumes not seen since 1994 and sparking an outflow of capital from China.

Source: Bangkok Post November 15, 2016 03:49 UTC