BEIJING (Alliance News) - The Chinese yuan weakened against the US dollar in the late Asian session on Thursday amid speculation the the central bank will cut interest rate again in coming months to support the economy.
Against the greenback, the yuan fell to an 8-month low of 6.2611. At yesterday's close, the yuan was trading at 6.2595 against the greenback.
If the yuan extends its downtrend, it is likely to find support around the 6.35 area.
The People Bank of China set today's central parity rate for yuan at 6.1379 per dollar, compared to Wednesday's reference rate of 6.1384. The central bank sets the reference rate every morning and allows the currency to move upto 2% from that level.
original source: http://www.lse.co.uk/AllNews.asp?code=u753knn3&headline=Chinese_Yuan_Falls_To_8month_Low_Against_US_Dollar