Economics
Signs Suggest China May Tolerate Yuan Weakening Past 7 Per Dollar
- Should be no intervention even if yuan hits 7: ex-PBOC adviser
- U.S. is due to release report on Chinese currency next week
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There are growing signs China’s yuan may weaken past 7 per dollar, a key psychological level it hasn’t breached in a decade.
The latest came in a China Securities Journal commentary Wednesday, where former central bank adviser Yu Yongding said authorities should refrain from market intervention and that tolerance of yuan weakness is needed for exchange-rate reform. The currency has already crossed the long-defended level of 6.9 against the dollar and is near its lowest since 2008.