Reuters exclusively reports China to tolerate weaker yuan; market reacts

Reuters exclusively reports China to tolerate weaker yuan; market reacts

The yuan fell as low as 6.6549 per dollar after Reuters was alone in reporting that China’s central bank is willing to let the currency fall to 6.8 per dollar in 2016 to support the economy, which would mean the currency matching last year’s record decline of 4.5 percent.

The yuan is already trading at its lowest level in more than five years. According to Reuters sources, the central bank will aim to ensure a gradual decline for fear of triggering capital outflows and criticism from trading partners such as the U.S.