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The yuan fell slightly against the dollar on Thursday, after the People's Bank of China set a weaker than expected mid point.
The central bank fixed the yuan mid-point at 6.8041. It's slightly weaker than Wednesday's 6.8007. Dealers perceive the move as a clear sign of government determination to let the yuan move more flexibly. There have been great expectations of yuan appreciation since the central bank launched a new round of foreign exchange reform in June.
The value of the currency initially rose slightly, but the mid-point spiked in recent weeks. It's now showing signs of slight depreciation.
- Yuan fluctuates in recent weeks 2010-08-27