The short-term downward pressure faced by the Chinese currency does not point to further depreciation space in light of China's economic recovery pace, experts said.
The offshore yuan dipped 0.35% to 7.1095 per dollar during intraday trading on Tuesday, while the onshore renminbi also weakened to 7.0995 during Tuesday trading hours. The stress further piled on as the onshore RMB momentarily slipped below 7.1 on Wednesday, the first time since Nov 30.
Ever since the RMB breached the 7-per-dollar psychological level on May 17, China's currency has depreciated by nearly 1.4% against the greenback to date.
The RMB's central parity rate quoted by the China Foreign Exchange Trade System, a reference for spot trades in the interbank foreign exchange market, stood at 7.0821 on Wednesday, while the quote was already lowered by 243 basis points to 7.0818 the previous trading day.
