China set its daily fix at 6.332 Wednesday, closely in line with Tuesday’s close of 6.3231. That means Beijing stuck to its pledge to let the market determine the midpoint around which the Chinese currency can trade. The fixing indicates that the “policymakers are open to further depreciation,” said Khoon Goh, currency strategist at ANZ Bank.
In the offshore market, where the yuan trades freely, the currency fell to as much as 6.5698 against the dollar. That’s its weakest level since 2011. The central bank is trying to let the market to find its own fair value where the spot and fixing can converge, analysts at Morgan Stanley said.