الأحد , يونيو 14 2020

China sets new lower yuan guide rate

Yuan notes

The lower yuan is likely to help Chinese exports

China has set the guiding rate for its yuan currency lower for third consecutive day.

Thursday’s rate was set 1% down against the dollar, a smaller margin than the shock cuts earlier in the week.

The bank had on Tuesday announced it would start setting the daily rate based partly on the previous day’s trading, bringing the yuan closer to a free-floating currency.

The move triggered concerns over a currency war to boost China’s exports.

Recent economic data had seen a decline in exports, adding to the worries that the world’s second largest economy was headed for a prolonged slowing of economic growth.

A weaker yen will make products cheaper abroad, making the country’s companies more competitive on international markets.

The Thursday midpoint rate set by the People’s Bank of China was 6.4010 yuan for $1, a 1.1% rise from the previous day’s 6.3306.

The midpoint is a guiding rate, from which trade can rise or fall 2% during the day.

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