China yuan weakens against $ for 8th day to lowest level in month

The central parity rate of the yuan against the US dollar fell for the 8th straight day on Thursday to the lowest level in over a month ahead of an IMF decision on whether to include the Chinese currency in the Special Drawing Rights (SDR) basket. The yuan weakened by 14 basis points against the US dollar, the China Foreign Exchange Trading System said. In China’s spot foreign exchange market, the yuan is allowed to rise or fall by 2 per cent from the central parity rate each trading day. The central parity rate of the yuan against the US dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day. Analysts attributed the fall to a stronger US dollar and the IMF’s upcoming decision on including yuan in its Special Drawing Rights (SDR) basket, state-run Xinhua news agency reported.