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Friday, 28 February 2014

Chinese Currency Falls to Lowest Level in Nearly a Year

The value of China’s currency, the renminbi, continued to slide against the United States dollar on Friday, rattling investors by falling to its lowest level in nearly a year.


With a drop of 0.3 percent, the renminbi hit 6.145 to the dollar in Friday trading, helping reverse a long running trend of gradual, incremental appreciation against the dollar and other major currencies during the last eight years. The intraday drop of almost 1 percent Friday was the biggest in years.


Analysts believe China’s central bank is intervening in the currency markets, intentionally engineering a slide in the value of the Chinese currency to punish speculators and prevent huge capital flows, or so-called hot money, from entering the country.


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bljworldwide via CHINA US Focus http://ift.tt/1pF83zc

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