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One way or another: China's yuan policy tweak a warning shot in old battle

Reuters  |  SHANGHAI/HONG KONG 

By John Ruwitch and Marius ZahariaSHANGHAI/HONG KONG (Reuters) - China's adjustment to the way it sets the reference rate for its tightly managed currency, suspending a tool for fine-tuning the exchange rate, is a fresh warning to would-be speculators that gives the yuan scope to retreat after a year of heady gains.The decision by the central bank to reduce the effect of a so-called "counter-cyclical" factor, introduced in May to limit market volatility in the yuan's calculation, initially knocked the currency lower when it was reported on Tuesday.The move makes the yuan more open to market ...

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First Published: Thu, January 11 2018. 16:22 IST
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