China's currency under pressure as growth slows
BEIJING (AFP) - China's currency is facing strong downward pressure this year as the country's once surging growth rates slow amid a stalling global economy and signs of capital flight after years of inflows.
It is a new development for the yuan, once on a steady upward trajectory on the back of expectations that China's impressive economic strength made the currency a one-way bet.
The economy, though, has slowed for six straight quarters and the 7.6 per cent year-on-year expansion in gross domestic product for the three months ended June 30 was the worst since the 2008-2009 global financial crisis.
The yuan has dropped just one percent this year, but the fall has come after years of gains amid foreign pressure by China's trading partners, especially the United States, who claimed it was undervalued.