The Chinese yuan was flat today, but may yet fall as the trading environment was negative for the currency after the People’s Bank of China reduced its reference rate and concerns about the global economy made riskier currencies unattractive for investors.
The PBoC cut its daily fixing by 0.09 percent, the most since September 18th, to 6.2745 per dollar. Yesterday, the market sentiment was rather negative amid bad news from Europe and the United States and today’s news was no better. The World Bank reduced its projection for global growth in 2013 to 2.4 percent from the previous estimate of 3 percent.
USD/CNY traded near the opening level of 6.2183 as of 12:08 GMT today.
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