China's surprise interest rate cut is another step toward softening the country's exchange rate, setting the yuan on course to end the year lower for the first time since its landmark revaluation in 2005. The People's Bank of China (PBOC) cut one-year benchmark lending rates on Friday, a move celebrated by Chinese corporates struggling against a toxic combination of high debt load and weak end demand. Analysts say it could also signal the end of a rally in the yuan since May, especially if the central bank follows up with a cut to reserve requirement ratios, which would flood money markets with cheap renminbi. ... (full story)