Yuan Weakens After Change of China’s Leader
The Chinese yuan weakened today as the nation’s central bank set its reference rate lower. Speculators were less willing to buy the currency as the change of China’s leadership makes the future currency policy of the country unclear.
The People’s Bank of China set the daily fixing at 6.2905 per dollar, 1.04 percent lower than yesterday’s closing level of 6.2252. The currency is allowed to diverge 1 percent in either direction from the fixing. Xi Jinping replaced Hu Jintao as a leader of China’s Communist Party. It is yet uncertain if the new head of the state will continue the policy of gradual appreciation of yuan.
USD/CNY went up from 6.2262 to 6.2367 as of 16:00 GMT today.
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Earlier News About the Chinese Yuan:
- Chinese Yuan Reaches High Not Seen for Almost 19 Years (2012-10-30)
- Yuan Rises as Manufacturing PMI Improves (2012-10-24)
- Yuan Rises as PBoC Sets Fixing Higher (2012-10-17)
- Yuan Slides, Can Negative Data Lead to Rebound? (2012-08-10)
- Yuan Declines on PMI Figure (2012-08-01)