The Chinese Yuan showed the first declining day since Monday on Forex today as the traders were driven by the speculations that the government will let national currency weaken slightly to support exporters.
Yuan declined for the first time in last three days after release of the report that the GDP growth decreased in the second quarter of 2008. Such situation may trigger Chinese financial authorities to turn out from the anti-inflation fight to the exporters protection.
The reference rate set by the People’s Bank of China was also lower today at the currency market’s opening. A further slowdown in exports will make China to rethink recent yuan’s appreciation to protect the country’s producers.
Gross domestic product gained 10.1 percent in the second quarter of the year, the slowest pace since 2005. First quarter showed 10.6 percent gain.
USD/CNY rate rose from 6.8155 at yesterday’s close level to 6.8315 as of 8:42 GMT today. The highest level for today was at 6.8329.
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