The Chinese yuan advanced today on the speculation that nation’s policy makers may ease regulations for banks to support the Chinese economy that is experiencing slowdown.
The People’s Bank of China plans to ease reserve ration for banks in hopes to free funds and avoid hard landing. Analysts speculate that China’s economy has already reached the bottom and is ready for another thrust to the upside. Additionally, economists believe that Chinese policy makers want more volatility for the yuan and that may allow the currency to appreciate further.
USD/CNY fell from 6.3235 to 6.3005 as of 10:28 GMT today.
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