(Yicai Global) Oct. 5 -- The Chinese yuan fell to its lowest rate against the dollar in almost two months following comments from US Federal Reserve Chairman Jerome Powell that the country no longer requires extremely loose low-interest rate policies.
The offshore yuan fell to 6.9171 against the dollar yesterday, the lowest level since August 16, while the US dollar index increased to 96.121.
Powell said on Oct. 3 that the Fed no longer needs to pursue such policies used when the economy is very fragile. The current interest rate is still loose, but it will gradually reach a neutral position.
Powell maintained that his institution would not be influenced by politics and the opinion of US President Trump, who has repeatedly expressed dissatisfaction regarding the Fed's interest rate policy.