Chinese yuan extends losses after weak GDP

The Chinese yuan was among the worst-performing Asian currencies on Wednesday, down 0.4% and once again crossing the 7.2 mark against the dollar.

The currency logged steep losses this week after data showed that a Chinese economic recovery slowed substantially in the second quarter, denting sentiment over Asia’s largest economy.

While the weak economic readings pushed up expectations for more stimulus measures from Beijing, any increases in local liquidity conditions are likely to be negative for the yuan.

Concerns over China also spilled over into other Asian currencies with exposure to the country. The South Korean won fell 0.1%, while the Taiwan dollar and Philippine peso lost 0.4% each.