The Chinese yuan weakened today as last week’s monetary policy decision of the US Federal Reserve continues to hurt the market sentiment, but may yet rebound on prospects for reforms in the Asian nation.
The Fed decided to reduce the size of its asset-purchase program during the monetary policy meeting last week. Since then, several US policy makers have talked about additional stimulus reduction and this hurt riskier currencies. The Chinese government is planning to allow free market forces more influence on the economy and it increased the appeal of the yuan to foreign investors.
USD/CNY was up from 6.0717 to 6.0754 as of 9:27 GMT today.
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