Yuan drops by most in 2 months

China’s yuan fell by 0.04% on Monday as the central bank lowered the currency’s fixing following the week-long closure for Chinese New Year, Bloomberg reported. Amid speculation that authorities are protecting exports against a weak yen, the People’s Bank of China dropped the reference rate to its lowest in two months at US$6.2816. Japan has been encouraged to continue stimulating its economy as long as policy makers cease publicly advocating a falling yen. The yuan weakened 0.16% from February 8, the largest one-day decline since December 16. The yuan is allowed a 1% fluctuation from the daily reference rate.