Chinese Currency Market: Yuan slides 1.2% from 2-year high, worst 1-day drop since 2015
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Now to the currency market. Chinese yuan had its worst day in more than 3 years. The Chinese currency closed at 6.3260 in the onshore market on Thursday, that's 664 bips lower than yesterday's midpoint rate, and the biggest one-day drop since mid-August 2015. The yuan weakened as much as 1.2 percent in Shanghai during the mid-day, touching as low as 6.3550 per dollar. The yuan has been rallying on the U.S. dollar's recent retreat. However the dollar has extended gains to its 2-week high in early Europe trading, on the optimism of the U.S. budget deal. The Dollar Index hovered at around 90.44 level. Economists say, the yuan's bull run may stop in the short term, and they expect the currency will remain pressured in the coming weeks.