China's yuan slides near 16-year low as economy struggles

Strong dollar and shrinking trade surplus create headache for central bank

The widening interest rate gap between China and the U.S. has helped push the yuan to its weakest point since late 2007. © Reuters

NORIYUKI DOI and TOSHIHIRO SATO, Nikkei staff writers

September 9, 2023 01:05 JST

SHANGHAI/TOKYO -- The yuan has sunk to its lowest level against the dollar in almost 16 years as efforts by the People's Bank of China to curb its slide continued to be outweighed by downward pressure in currency markets.

The Chinese currency touched 7.3294 against the dollar at one point Thursday, a level last seen in December 2007. It dipped even further during trading hours Friday, depreciating as far as 7.3510 to the greenback.