© Reuters.

(Bloomberg) — China’s currency weakened, extending a slide that’s made it one of the worst performers in the world in the past month, amid increasing tensions with the U.S.

The slid as much as 0.35% to 7.1698 per dollar on Wednesday, taking its four-week decline to 1%. That’s the biggest drop among at least 32 major currencies after those in Peru and Argentina. The offshore rate is edging toward its record low of 7.1965 per greenback set in September last year.

There are signs Chinese authorities are content to allow the yuan to fall as the U.S. administration steps up its criticism over Beijing’s initial handling of the coronavirus and intention to impose a national security law on Hong Kong. The People’s Bank of China (OTC:) had this week set its daily yuan reference rate at the weakest level since 2008. The fixing was slightly stronger on Wednesday.

“The PBOC will allow the yuan to continue weakening as U.S. China trade tensions continue rising, as long as it is orderly,” said Qi Gao, a currency strategist at Scotibank.

©2020 Bloomberg L.P.

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