The value of the Chinese currency, the Renminbi, continued to weaken against the U.S. dollar. The central bank set the mid-point of the yuan at 6.8015 per U.S. dollar on Thursday.
It's the biggest drop in seven weeks, as concern that the global economic recovery is faltering drove the dollar higher. It also fueled speculation that Chinese policy makers might restrict gains to protect exports.
China announced on June 19th this year that it would further reform the yuan exchange rate mechanism, to improve its flexibility. The yuan is allowed to fluctuate by half a percent on either side of the daily mid-point.
- PBOC advisor: Yuan's weakness is normal 2010-08-13