China lowers yuan rate by most in three months

 

 China lowers yuan rate by most in three months

The dollar rose after China released data Wednesday showing exports surged more than expected in March, the latest results suggesting a growth slowdown in the world's number two economy could be easing.

Tommy Xie, a Singapore-based economist at Oversea-Chinese Banking, told Bloomberg News the lower fixing was "a reflection of the overnight dollar recovery", but added that the drop was not as big as expected and expected further weakening.

Beijing has spent huge sums to support the currency and stem capital flight since rattling investors with the surprise devaluation in August, when it guided the normally stable unit down nearly five percent in a week.

The PBoC on Wednesday provided 285.5 billion yuan to 17 financial institutions through its medium-term lending facility to maintain liquidity in the banking system, it said in a statement on its official microblog.

It also injected 40 billion yuan through its regular open market operation Thursday.

The onshore yuan was quoted at 6.4837 to $1 at around 10am (9am Thailand time) on Thursday, down 0.25% from the previous day's close.