China’s yuan retreated from a 19- year high after the central bank weakened the currency’s reference rate even as a government report showed growth in the services industry accelerated.
The People’s Bank of China lowered the daily fixing by 0.04 percent to 6.2609 per dollar today, the first decline in three days. The yuan is allowed to trade 1 percent on either side of the reference rate. The nation’s non-manufacturing Purchasing Managers’ Index rose to 55.6 in March from 54.5 in February, according to data published by China Federation of Logistics & Purchasing and the National Bureau of Statistics.
“China data is signaling the economy is still in the early stage of a rebound,” said Sim Moh Siong, a strategist at Bank of Singapore. “The PBOC is under no pressure to go for faster yuan appreciation, especially with concerns surrounding the Europe and U.S. economies.”
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