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RMB weakest against dollar since 2010

The Wall Street Journal reports the RMB fell to its weakest level against the U.S. dollar since late 2010, after China’s central bank cut its daily-fix value for the currency by the biggest margin since a one-time devaluation in August 2015. The sharp move in the yuan fixing was a reaction to volatility in currency markets following the U.K.’s Thursday decision to leave the European Union, and especially to a surge in the U.S. dollar Friday as haven currencies jumped. The People’s Bank of China on Monday fixed the yuan at 6.6375 per U.S. dollar, 0.9% weaker than Friday’s fixing of 6.5776. That move in the fixing level was slightly less than the 1.1% devaluation last August. The currency is allowed to trade up or down 2% from the daily fix.

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