China’s Yuan Weakens as U.S. Recovery Bolsters Dollar Demand
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China’s yuan fell for the second consecutive day on speculation the U.S. economic recovery is back on track, bolstering the dollar.
The U.S. Dollar Index, a gauge of the greenback’s strength, advanced for the third day before reports that will probably show a recovery in employment and the service industry. The People’s Bank of China set the reference rate lower for the first time in 11 days at 6.6295. The daily fixing will likely be around 6.62 to 6.64 per dollar until President Hu Jintao’s state visit to Washington later this month, said Gerrard Katz, head of foreign-exchange trading at Standard Chartered Plc.