Yuan Drops, Intervention Suspected

The Chinese yuan slid today, heading to a weekly loss, on speculations that the central bank intervened to prevent appreciation of the currency as a measure to help local exporters.
Analysts think that this week’s drop is a result of an intervention from Chinese policy makers, who prefer the yuan to be weak. Chinese officials denied the intervention, saying that the currency’s moves were in accordance with balance of supply and demand. The People’s Bank of China increased flexibility of yuan’s moves recently.
USD/CNY rose from 6.2309 to 6.2339 as of 11:06 GMT today.

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