The Chinese yuan fell against the US dollar today as China’s stock markets resumed their decline, reigniting fears about economic slowdown in the world’s second biggest economy that can hurt the global economy as well.
The Shanghai Stock Exchange Composite Index resumed its decline, falling 1 percent today. Yesterday’s economic data from China was largely in line with expectations but some reports were a bit worse than economists had predicted, including the very important ones such as the gross domestic product and the industrial production indicators. Market participants expect that Chinese policy makers will continue to take steps to bolster economic growth, but such expectations were unable to prevent the yuan from falling during the current trading session.
USD/CNY rose from 6.5775 to 6.5801 as of 12:41 GMT today.
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