Yuan Drops as Central Bank Sets Reference Rate Lower
The Chinese yuan was weaker today after the nation’s central bank cut the daily reference rate on concerns that the continuing European crisis would hurt growth prospects.
The People’s Bank of China cut the fixing by 0.18 percent. It stands now at 6.3115 per dollar. The cut was biggest since November 15.
The yuan also dropped as fears of Europe’s crisis deterred traders from buying riskier assets. Zhu Min, the Deputy Managing Director of the International Monetary Fund, expressed a negative outlook for the global economic growth and spoke about increasing downside risks at a conference in Singapore today.
USD/CNY rose from 6.2990 to 6.3092 as of 15:49 GMT today.
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Earlier News About the Chinese Yuan:
- Record Drop of Yuan Since July 2010 (2011-11-25)
- Yuan To Move Toward Flexibility on Currency Market (2011-11-21)
- Yuan Gets Stronger as China Expected to Allow Gains (2011-08-23)
- Yuan Goes Down as Europe Saps Demand for Asian Assets (2011-08-17)
- PBoC Allows Yuan Appreciation (2011-08-08)