Currencies
China's Loosening Grip on Yuan Allows Currency to Test a Key Milestone
- PBOC keeps fixing steady Wednesday after cutting it earlier
- Future declines in yuan will be “very slow,” economist says
The yuan will weaken to test 7.30 per dollar by the end of this quarter, according to 10 analysts polled by Bloomberg.
Photographer: Lam Yik/BloombergChina’s second attempt in a month to loosen its grip on the yuan is opening up the door for the currency to test a psychological milestone that hasn’t been seen since November.
The yuan will weaken to test 7.30 per dollar by the end of this quarter, according to 10 analysts polled by Bloomberg after Beijing moved to guide the managed currency weaker Tuesday through its daily reference rate. While that is less than 1% from the yuan’s current level, the path leading to it will be paved with official pushback against sharp declines, they said.