HONG KONG—China’s currency has dropped to its weakest level against the U.S. dollar in two years. It is likely to depreciate further as the country’s central bank moves to combat a slowing economy and a deep housing downturn.
On Tuesday, the yuan traded at more than 6.86 to the dollar in China’s tightly controlled onshore market, hitting levels last seen in August 2020, according to FactSet. The currency weakened past 6.88 in the more freely traded offshore market, taking its year-to-date decline against the dollar to more than 8%.
