Yuan falls to new 5.5 year low as PBOC stays aside
The Dollar Business Bureau There are concerns that the People's Bank of China (PBOC) would tolerate a further declining of the yuan, as the central bank seems to have stood on the sidelines, as the Chinese currency reached a new 5 and a half year low against the dollar consecutively for the second session on Monday. The yuan declined to 6.6642 just after opening on account of heavy dollar buying in the market. This was weakest since December 2010. In spite of Yuan’s continued decline, there were no indications of intervention by the state banks' on behalf of the People's Bank of China. This is a tacit move, though not by China’s central bank to keep the Chinese currency slide further, said some traders. Last ...
Chinese currency continues sharp fall on third day
Source: PTI Chinese currency on Thursday continued its sharp fall for the third consecutive day, sending jitters in the markets as the central bank assured that there will not be currency slump as feared by many at home and abroad. China had devalued its currency twice within two days, sending shockwaves and fuelling fears of a currency war. The central parity rate of the yuan Thursday weakened by 704 basis points, or 1.1%, to 6.401 against the US dollar, narrowing from Wednesday's 1.6% and almost 1.9% on Tuesday, according to the China Foreign Exchange Trading System, state-run Xinhua news agency reported. On Tuesday, the People's Bank of China (PBOC) reformed the exchange rate mechanism to better reflect market development in the ...
