China's yuan drops nearly 1% against dollar in 'deliberate' tactic
SHANGHAI (AFP) - China's yuan currency fell nearly one per cent against the US dollar in intraday trade on Friday, its biggest drop in years, in what dealers viewed as a deliberate central bank tactic.
The yuan - also called the renminbi (RMB) - dropped around 0.9 per cent from the previous day's close in morning trading to 6.1808 against US$1, its largest slide since the country ended a fixed peg to the dollar in 2005, Dow Jones Newswires reported.
The currency has fallen repeatedly in the last two weeks with many dealers believing the depreciation is a deliberate move by the People's Bank of China (PBoC), the central bank, to target speculative funds betting on continued rises.
"PBoC's recent action is to curb the one-way bet and possibly unwelcome arbitrage activities," Australia and New Zealand Banking Group said in a research report on Friday.