Yuan Drops as PBOC Cuts Reference Rate by Most Since July 2012

China’s yuan fell after the central bank cut the currency’s fixing by the most since July 2012 and the nation’s exports unexpectedly declined last month.

The People’s Bank of China lowered the daily reference rate by 0.18 percent to 6.1312 per dollar today, the weakest level since Dec. 3. Overseas shipments fell 18.1 percent in February from a year earlier, the biggest drop since 2009, customs data showed March 8. That compares with the median forecast for a 7.5 percent increase in a Bloomberg News survey. The figures may have been distorted by the Lunar New Year holiday and over-invoicing a year earlier, Tim Condon, Singapore-based head of Asia research at ING Groep NV, wrote in a note today.

http://www.bloomberg.com/

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