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.
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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.
