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China’s yuan weakens on growth concerns, widening interest rate differential
The yuan weakened on Wednesday as April trade data heightened concerns about the outlook for China’s economic growth, and a widening yield differential between US and Chinese bonds also deterred investors. While China reported a higher-than-expected $90 billion April trade surplus, investors were disappointed by a sharp contraction in imports and slower export growth. “Investors are taking a conservative stance on the yuan as they want to see broader evidence that China’s recovery is also fueled by external demand, not just domestic consumption,” said Kiyong Seong, macro strategist at Societe Generale in Hong ... (full story)