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Tuesday, December 15, 2015, 09:49

Yuan hits new low against US$

By Agencies

SHANGHAI - The People's Bank of China (PBoC) set its official midpoint rate at 6.4559 per dollar prior to the market open on Tuesday, its weakest level since July 2011, and 0.1 percent weaker than the previous fix of 6.4495.

Guided by a series of weaker PBoC fixes, spot yuan hit its lowest level in 4-1/2 years on Monday.

The central bank said on Friday that it had begun publishing a yuan exchange rate weighted against a basket of currencies, a move that will eventually loosen the Chinese currency's link to the greenback and that will let the yuan weaken further.

However, PBoC said in a statement on Monday that in the medium-to long-term, the yuan's exchange rate will remain stable at a reasonable level.

This is based on China's economic growth rate, which is the highest in the world, as well as on an increased desire to hold yuan-denominated assets after the currency's inclusion in the IMF's basket.

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