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China Weakens Yuan Fix to Lowest Since January to Allow Declines
China signaled its permission for the yuan to weaken against the dollar, as a jump in capital outflows and a resilient greenback pressured the central bank into loosening its grip. The People’s Bank of China weakened its daily reference rate for the yuan to a level unseen since January. The move came as the currency slid in the spot market this week amid signs investors are avoiding yuan-denominated assets for higher-yielding ones and bets the dollar will stay strong. The PBOC’s tweaks to the so-called fixing — though moderate so far — may carry an important clue for the market, as it shows Beijing may be ... (full story)