China yuan weakens after signs of stability calm markets

Financial markets tumbled after Beijing allowed the yuan to fall to an 11-year low against the dollar this week. (File photo: Reuters)

China’s yuan has weakened again after signs its decline was stabilizing helped to reassure jittery financial markets.

The currency edged down to 7.0488 to the US dollar on Wednesday, about 0.4 percent below its level late the previous day.

Financial markets tumbled after Beijing allowed the yuan to fall to an 11-year low against the dollar this week. That prompted Washington to label China a currency manipulator, opening the way to possible sanctions.

The central bank promised to keep the currency stable, which helped to reassure investors.

Despite that, the central bank set the opening level for trading Wednesday at 6.9996 to the dollar, almost 0.5 percent below Tuesday’s starting level.

The central bank allows the yuan to rise or fall 2 percent during the day.

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Last Update: Wednesday, 20 May 2020 KSA 09:52 - GMT 06:52
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