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Yuan's drop aligns it with China's cooling economy, easier policy
A surprising rally for China’s yuan over the turn of the year has been cut short by widespread expectations that Beijing will ramp up policy easing in coming months to avert a sharper economic slowdown. The yuan CNY=CFXS has retreated to the weaker side of 6.8 per dollar this week, but is still up nearly 3 percent since early December on hopes that Washington and Beijing may be inching toward a trade deal. Gains in a currency that was one of Asia’s weakest in 2018 were also fueled by expectations that Beijing does not want to see the currency drop too much, in case it becomes a sticking point in negotiations with ... (full story)