Analysis: As China’s yuan drops through 7 again, the dollar is in the driver’s seat

SHANGHAI/SINGAPORE, May 18 (Reuters) – China’s heavily managed yuan has dropped to multi-month lows and breached the closely watched 7-per-dollar level, and analysts who are predicting more weakness point to the U.S. Federal Reserve’s policy as being the bigger driver than economic weakness at home. The yuan, also referred to as the renminbi , hit 7.0234 per dollar on Thursday, levels last seen in December before euphoria over China’s reopening after the COVID-19 pandemic lifted it for a few weeks. As doubts grow about the strength of its economic recovery, foreign money has left China’s markets and the currency has…