BEIJING: China cut the value of the yuan against the dollar for a second consecutive day Wednesday, trimming the reference rate by 1.62 percent and sending a new shockwave through financial markets.
But the bank played down expectations it would continue to depreciate the currency, after it devalued the yuan by nearly two percent on Tuesday.
That devaluation — the biggest since 2005 when China unpegged the yuan, also known as the renminbi (RMB) from the dollar — raised worries over the health of the world’s second-largest economy.
The action was widely viewed as way to help boost exports by making them more competitive as economic growth slows, although China’s central bank described it as a one-off move to reform its exchange rate system.
