China Markets Set for More Volatility as Covid-Zero Stays
- Official says China to ‘unswervingly’ stick to Covid measures
- Financial markets rallied last week on speculation of easing
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The yuan dropped at the start of what may be another volatile week for Chinese markets after health officials vowed to “unswervingly” stick to a Covid Zero approach, damping optimism that Beijing was working toward easing restrictions.
The offshore yuan dropped 0.8% to 7.24 per dollar, unwinding some of Friday’s 2% surge. The Australian dollar -- a China-risk proxy -- fell over 1%, while the greenback advanced on haven demand.