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Yuan Drops Most Since 2010 on Speculation PBOC Wants Volatility

China’s yuan tumbled the most in more than three years on speculation the central bank wants an end to the currency’s steady appreciation to ward off speculators before a possible widening of the trading band.

The yuan fell 0.46 percent, the most since Nov. 1, 2010, to close at 6.1266 per dollar in Shanghai, according to China Foreign Exchange Trade System prices. It slid for a sixth day and reached a six-month low of 6.1310. The spot rate ended the day weaker than the central bank’s reference rate for the first time since September 2012, having been 0.77 percent stronger on average so far this year. It can diverge by a maximum 1 percent from the fixing, which was set at 6.1184 today.