Yuan Falls as World Bank Lowers Growth Projection
The Chinese yuan fell today as the World Bank reduced its projections for global growth. The previous data from China did not help the currency either.
The World Bank lowered its estimate for this year’s growth of the global economy to 2.2 percent from the previous figure of 2.4 percent. In China, a “weak 7.7 percent growth” is expected, which should accelerate to 8 percent next year. Morgan Stanley reduced its forecast for China’s growth in 2013 from 8.2 percent to 7.6 percent. Today was the first trading session on China’s markets after the three-day holiday of the Dragon Boat Festival.
USD/CNY rose from 6.1341 to 6.1352 as of 9:53 GMT and its intraday maximum was as high as 6.1507.
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