Renminbi rate offers no cause for concern

THE CHINESE CURRENCY weakened against the US dollar on Monday to a six-year low in the offshore market, with its central parity rate falling to 6.85 against the dollar. Beijing Youth Daily commented on Tuesday:

Since Donald Trump defeated his Democratic rival Hillary Clinton in the US presidential election a week ago, the dollar has rallied against several major currencies following upbeat economic data and the possibility of an interest rate hike in the country.

In contrast, the renminbi has weakened. However, the People's Bank of China, the country's central bank, has refrained from intervening and the A-share market has proved to be immune to the plunging renminbi as yet.