The Yuan fell the furthest in two weeks after China’s central bank cut the reference rate by 0.07% yesterday – fixing the currency at its lowest since September 2010. The Caixin Flash Manufacturing Index is predicted to show shrinking factory output for the seventh consecutive month.
This weak data supports the argument to keep cutting the interest rates, whilst comments in the States are all suggesting a move in the opposite direction; both of these ideas have had detrimental effects on the yuan’s valuation.
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