Economics
Toyota, Honda Boost China Pay; Yuan May Slow Exports
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Toyota Motor Corp. and Honda Motor Co. suppliers sacrificed earnings in China by raising wages to end strikes, and the government’s decision to allow greater exchange-rate flexibility may slow plans to export vehicles from the nation as the currency appreciates.
China’s central bank will allow the yuan more flexibility, it said in a statement on June 19, signaling an end to the currency’s two-year-old peg to the dollar. The currency climbed the most in 20 months against the dollar and forwards jumped.