USD/CNY at 6.17 as Zhou Calls for Growth Vigilance

China’s yuan headed for a second weekly loss on speculation policy makers will encourage declines to boost exports and support the economy.

People’s Bank of China Governor Zhou Xiaochuan called for “vigilance” on whether growth slows further even as he said the nation can achieve an expansion rate of 7.5 percent, which would match the government’s target for the year. He spoke in an interview in Kigali, Rwanda. The PBOC lowered the yuan’s reference rate by 0.04 percent to 6.1681 per dollar today.

“The comment shows that growth concern is foremost on central bankers’ minds,” Dariusz Kowalczyk, senior economist and strategist at Credit Agricole CIB in Hong Kong, wrote in a report today. “The current bias points to more downside for the yuan.”

Bloomberg

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