From Xinhuanet (link)
China’s official exchange rate weakened significantly on Tuesday, the central bank announced, defying a gain the day before that helped break through the psychologically important 8 yuan per U.S. dollar level.
The dollar, measured by the central parity rate announced by the People’s Bank of China before the market opens each business day, bounced back to 8.0150 yuan. The yuan depreciated by 168 basis points, the biggest day-on-day decline since a revaluation reform last July.
In an interview with Xinhua, finance expert Tan Yaling with Bank of China said, “There will definitely be a return following speculative activities in the market. Essentially, the (currency) price ups and downs are very natural.”
