03-28, 2014 Share:
Since March 2014, the exchange rate of the Yuan against the US Dollar has been falling.
After closing at 6.1965 against the dollar on Wednesday, the Yuan opened on Thursday at 6.2080. At one point it fell to 6.2334, the lowest since March 4, 2013, until a slight recovery to 6.2275 before closing.
The slump may mark the end of the Chinese currency's decade-long appreciation.
The fall comes as the People's Bank of China, the central bank, dropped the daily reference rate for the currency by 109 basis points, to 6.1460; the lowest so far this year.
The Yuan has lost more than 1 percent against the dollar this month, right after a 1.38 percent record dip in February that is widely believed to have been a central bank maneuver to chase away speculators betting on one-way appreciation of the Yuan.
However, on March 11th, Zhou Xiaochuan, the central bank’s governor, denied any intervention, saying, “The Yuan’s retreat has been driven solely by market forces.
From now on, the Yuan will be more volatile and one-way appreciation will be over. Its exchange rate is in response to the market demands ，I think it is a benefit both to Chinese exporters and overseas importers.”
HPDI, will estimate Yuan exchange rate trends and lower the quotation prices for plastic injection molds accordingly so that our customers can share the benefits of the changing rates.
Byron Wang
2014/03/24
