Renminbi weaker after strongest fix in 2 months

China’s currency was softer after its central bank fixed the renminbi’s trading band at its strongest level in two months in the wake of the dollar’s Tuesday fall against a host of major currencies.

The onshore renminbi gained 0.8 per cent against the dollar at the close of trading yesterday as President-elect Donald Trump questioned the value of the dollar, but had weakened 0.3 per cent in early trade on Wednesday to be Rmb6.8630.

This was despite the People’s Bank of China setting the daily midpoint around which the currency can trade 2 per cent in either direction at Rmb6.85250, firmer by 0.7 per cent and at its strongest level since mid-November.

The offshore renminbi, which is not bound by the trading band, had weakened 0.2 per cent to Rmb6.8176 in early trade.

The dollar index, which measures the US currency against a basket of peers was up 0.2 per cent on Wednesday morning at 100.530 after dropping 0.8 per cent the previous day.