China lowers yuan rate by most in three months
China’s central bank cut its exchange rate for the yuan currency against the US dollar by the largest amount in three months Thursday as the greenback strengthened on improved Chinese trade data.
The People’s Bank of China (PBoC) set the yuan at 6.4891 to the dollar, down 0.46 percent from Wednesday’s fix, according to the China Foreign Exchange Trade System, marking the biggest one-day drop since January.
Authorities only allow the yuan to rise or fall two percent on either side of the daily fix, to prevent volatility and maintain control over the currency.
A weaker yuan should make Chinese goods cheaper on world markets and repeated cuts in the rate last August and again in January raised fears Beijing was seeking to devalue the unit to give its exporters a competitive advantage. Officials have repeatedly said they have no intention of doing so. Read more