FOREX-Yuan slides after PBOC, dollar little changed on MLK Day

The yuan fell on Monday to a one-month low after China's central bank surprised markets by keeping its medium-term policy rate steady, while the dollar was little changed on Martin Luther King (MLK) Jr. Day, a public holiday. The People's Bank of China (PBOC) left interest rates unchanged when rolling over maturing medium-term policy loans, defying market expectations for a cut to shore up China's bumpy post-pandemic economic recovery. "China’s central bank kept its medium-term lending facility rate unchanged at 2.5%, contrary to the widespread consensus of a 10 basis points cut," said Tommy Wo, senior economist at Commerzbank.