People’s Bank of China raised the rate of the yuan for the first time in 13 days, as the dollar began to slow the pace of growth of the exchange rate of the currency markets. Thus, the regulator gave new ground on speculation that the authorities are prepared to take measures to curb the depreciation of the Chinese currency.
People’s Bank of China devalued daily fixing by 0.3% to 6.8779 CNY per USD, ending the 12-day decline that led yuan to the weakest level since June 2008. The investors should consider whether to not reduce bets on the currency depreciation as the authorities confront more seriously devaluation.
The central bank is concerned that recent declines in the yuan could cause higher expectations for faster and sharper devaluation, so taking measures to manage this rate. The market is still dominated by bearish attitude of the yuan in the long run. China will hardly strengthen the exchange rate, but will simply controlled decline as wants a weaker currency to support the economy.
Currency that is traded on the internal market (USD/CNY), rose by 0.03% in the first hours of the trading session. After the victory of Donald Trump on the US presidential election yuan fell by 1.5% against the dollar.