China's central bank is starting to guide the yuan downward
against the dollar after two years of trying to boost its value, reflecting
concern in Beijing over China's slowing economy and risking a political fight
with the U.S., the WSJ reports.
The People's Bank of China guided the Chinese currency to
its weakest level of the year on Wednesday against the U.S. dollar, the third
straight day of a push to bring down the yuan's value. Overall, the yuan has
fallen 1.1% against the dollar this year after rising 4.7% against the U.S.
currency last year.
Traders and analysts say the change is aimed at helping
exporters cope with slowing sales and reducing the chances of major layoffs
ahead of a major—and sensitive—once-a-decade Chinese leadership change set to
begin later this year. A cheaper yuan makes Chinese goods less expensive in
dollar terms…..
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