The Chinese yuan edged down in value on Monday against the world's reserve currency, dipping to its lowest value in four weeks as confidence developed about the central bank of the Asian nation intervening, according to Bloomberg.
China slashed its daily reference rate by 0.01 percent, pulling down the metric to its lowest rate since last September. In March, foreign-exchange sales rose by 189.2 billion yuan after climbing 128.2 billion yuan during the month prior.
"When we strip out the trade balance and foreign direct investment flows, the residual is our estimate of hot money flows, which came in at $10.5 billion," strategist Khoon Gohan with Australia & New Zealand Banking Group Ltd. in Singapore told the news source on Monday. "There was only a small change to the fixing today, but they seem intent on keeping the spot rate trading at the weak side of the band."
The renminbi fell roughly 0.05 percent against the U.S. dollar as the trade week began.
Thus far this year, the yuan has fallen roughly 2.8 percent against the greenback, The Wall Street Journal reports.
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