China’s yuan sinks to record low against greenback

China’s yuan has tumbled to a record low against the US dollar on the offshore market amid recent political developments, with Xi Jinping being confirmed as head of the country’s Communist Party for an unprecedented third term.

The currency saw 7.30 per dollar.

Xi, 69, is the first Chinese leader to hold the post for a third term since the party was founded 100 years ago.

The confirmation was formally announced after the first session of the Central Committee of the party’s 20th National Congress on Sunday.

Investors also reacted to mixed domestic economic data, as China’s economy grew more than expected in the third quarter of the year, with its gross domestic product (GDP) up 3.9% on an annual basis.

On the other hand, the country’s retail sales, exports, housing prices, and labor market weakened in September.

Analysts said worries over China’s zero-Covid policy, sectorial crackdowns, and divergent monetary policy have weighed on Chinese assets.

While other major central banks are expected to further tighten the money spigots, the People’s Bank of China is providing more liquidity to the markets.