The yuan has fallen to a minimum in 14 years

The Chinese yuan, paired with the US dollar, fell to the lows of 2008 amid signals of weakening support for the currency by Beijing. The current quote of the yuan is 7.2297/$1, which has become the lowest value in the last 14 years. 

The day before, the People's Bank of China announced that it was ready to allow the yuan to weaken by setting the reference rate of the national currency at 7,1107, which is the lowest level in more than two years. The market exchange rate may deviate from the reference rate by no more than 2% in one direction or another during the session.

At the same time, the US dollar is actively growing against other currencies on Wednesday morning. The ICE index, which shows the dynamics of the dollar against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and Swedish krona), adds 0.38% during trading. The broader WSJ Dollar index is up 0.3%.

Growth in a pair with the dollar is demonstrated only by the Japanese yen: its rate on Wednesday is 144.6 against 144.81 at the end of the previous session.

Analysts believe that the US currency will continue to strengthen amid the aggressive tightening of the monetary policy of the US Federal Reserve. In addition, the dollar is supported by a decrease in risk appetite on world markets, and further growth of volatility in financial markets will contribute to the strengthening of the dollar due to its status as a «safe haven» currency.