Yuan Snaps Three-Day Decline as Wen Reiterates Need for Stimulus

China’s yuan halted a three-day drop after Premier Wen Jiabao reiterated that his government will implement policies to steer economic growth.

Wen warned the momentum for a recovery in growth isn’t yet in place and that “difficulties” may persist for a while, the official Xinhua News Agency reported yesterday. The government will step up policy fine-tuning in the second half, he said. The central bank may cut interest rates by as much as one percentage point in the coming year, two-year swap rates showed.