Yuan Has Worst Quarter Since Peg Ends as Europe Hurts Growth
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The yuan had its biggest quarterly decline since a dollar peg ended in 2005 as Europe’s crisis hurt demand for Chinese exports, slowing expansion in the world’s second-largest economy.
The People’s Bank of China lowered the currency’s daily reference rate by 0.48 percent this quarter, while the Dollar Index strengthened 4 percent as investors favored safer assets. Slowing trade to the U.S. and Europe has “impacted” the yuan, Zhang Jianhua, director-general of the People’s Bank of China’s research bureau, said at a forum in Shanghai yesterday.