The Chinese yuan is currently heading for its fourth weekly decline against the U.S. dollar for the first time since the end of the peg to dollar in 2005.
The currency dropped just little more than 0.1 percent this week adding to a total of more than 0.7 percent in a losing streak lasting from July 18. The Chinese government is probably cooling down yuans appreciation to support the exports and countrys production.
According to the recent reports, Chinas industrial growth advanced at a slowest pace since February 2007 last month, while the second quarter economic growth was the lowest since since 2005.
Currency strategists suggest the end of the one-way yuans appreciation as they think that the GDP growth may moderate even further. Some volatility with corrections and retractions will probably prevail on the yuans foreign exchange market for the next few months. Nevertheless, the growth of the Chinese currency against the dollar in a long term is inevitable.
USD/CNY rate rose from 6.8600 to 6.8669 this week as of 7:47 GMT.
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