Economics
A Strong Dollar Hurts China More Than the U.S.
- Yuan's tether to greenback means both climb on higher rates
- China suffers more than the U.S. as it depends more on trade
What’s Behind Chinese Yuan's Fall to Four-Year Low?
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The biggest loser from a stronger dollar may be China, not the U.S. And that’s why some economists predict the Asian nation will loosen its currency’s link to the greenback and allow the yuan to depreciate.
The People’s Bank of China took what may be a small step in that direction on Wednesday when it cut the currency’s reference rate to 6.4140 per dollar, its weakest level since 2011.