Yuan Declines on Efforts of Chinese Policy Maker to Keep it Low

The Chinese yuan fell today on the speculation that the signs of the deteriorating global economy may prompt the Chinese policy makers to limit the currency’s gains in order to prevent the damage to the exports, which the strong currency may cause.
The People’s Bank of China lowered today the daily reference rate by 0.36 percent to 6.8015 versus the dollar. The US officials stated that in the previous month the yuan was undervalued as the Chinese government keeps the currency rate artificially low to gain the unfair trading advantage.
USD/CNY traded at 6.7843 today as of 8:52 GMT after it opened at 6.7759 and jumped as high as 6.7940.

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