Economics
China's Yuan Toppled From Two-Year High as Trade Data Surprises
- Surge in imports reduced surplus, showing drop in yuan demand
- There have been signs officials may act to stymie appreciation
China's Trade Surplus Narrows on Surge in Imports
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China’s yuan sank the most since the aftermath of its shock 2015 devaluation, after data showed the country’s trade surplus more than halved last month, and investors speculated controls on outward cash flows will be eased.
The yuan weakened as much as 1.2 percent in Shanghai, touching as low as 6.3550 per dollar on Thursday. The slump marks a reversal for the managed currency, which acts as an anchor for the wider Asian region and has been rallying amid the dollar’s retreat.