China’s central bank weakened the daily reference rate for its currency by the largest percentage in more than a year and half, as it continues to fight capital inflows and as sluggish economic data sends jitters through the market.
The People’s Bank of China set the daily reference rate Monday at 6.1312, 0.18% higher than Friday’s 6.1201, the largest one-day change since July 2012.
The U.S. dollar-Chinese yuan pair was fixed “much higher than what the market environment would have otherwise suggested,” said Sacha Tihanyi, a senior currency strategist at Scotiabank in Hong Kong. This suggests, he said, that the pair is heading back to the weak levels the yuan hit against the greenback a few weeks ago.
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