There’s no economic or financial “basis” for the yuan exchange rate to fall continuously, China’s central bank said in a statement after it lowered the daily fixing price by 1.6 percent on Wednesday. “Economic indicators are turning better and there are positive changes in the economy, which provide a good macro-economic environment for a stable yuan exchange rate,” the People’s Bank of China said. China’s trade surplus “is another important fundamental factor supporting the yuan.” The comment came as the yuan headed for its biggest two-day drop in 21 years after the reference rate was cut to the weakest level since ... (full story)