The Chinese yuan slipped for a second consecutive trading session against the U.S. dollar on Monday after the People's Bank of China reduced the daily reference rate for the monetary unit, Bloomberg reports.
The Monday reference rate of the central bank of the Asian nation was 0.09 percent lower than it was this past Friday, tugging down the monetary unit of the world's second-biggest economy.
"Does this herald a return to the old status quo of one-way FX appreciation? Our medium-term answer is 'no,'" states an April client note penned by Asian FX research head Paul Mackel with HSBC in Hong Kong, according to Fox Business. The most recent inflows of capital into the Asian nation have been prompted by increased confidence about the monetary unit's value. "These expectations could reverse in the future should the domestic and external environments change."
Twenty-four regulations enforced by the State Administration of Foreign Exchange of the Asian nation might soon be eliminated, the agency noted on Saturday, according to Bloomberg.
But China is forecast to continue navigating through rough economic times of the sort that plagued the nation last year, according to Fox Business.