Yuan watchers arguing that China shouldn’t be scared of the currency breaking 7 a dollar are being emboldened by a former central bank official’s support for their thesis.
In the four days since ex-governor Zhou Xiaochuan dismissed the importance of 7, at least six analysts published reports laying out why the People’s Bank of China is likely to tolerate a weaker yuan. They say policy makers are more likely to prioritize supporting economic growth amid a worsening standoff with the U.S. over trade. The yuan was 0.1% weaker at 6.9075 per dollar Tuesday.
