Yuan Forwards Drop a Second Day as China’s Growth Seen Slowing

Yuan forwards fell for a second day on speculation China will slow currency appreciation to protect exporters and support economic growth.

The yuan has lost 0.3 percent since Premier Wen Jiabao said on March 5 the nation will target an expansion of 7.5 percent this year, compared with an earlier 8 percent goal that in place since 2005. The People’s Bank of China set the yuan’s reference rate 0.1 percent lower at 6.3092 per dollar today, weakening it for the first time in four days. BHP Billiton Ltd., the world’s biggest mining company, said yesterday China’s steel production is slowing, while a U.S. report showed housing starts fell in February from a three-year high.