The Chinese yuan fell toward its lowest value since late 2012 against the world's reserve currency on Thursday as a consequence of the People's Bank of China reducing the daily exchange rate while the U.S. dollar advanced in value, according to Bloomberg.
The PBOC dropped the daily exchange rate by 0.02 percent on Thursday. The renminbi will push ahead by 3 percent by the end of this year, according to Nomura Holdings Inc. Markets are likely to be impacted by the European Central Bank's policy decision, which comes after the body meets in Frankfurt.
"If you look at the global environment, there's the ECB meeting today and the U.S. non-farm payrolls tomorrow," economist Suan Teck Kin with United Overseas Bank Ltd. in Singapore told the news source on Thursday. "You'll probably see a bit of dollar strength, so that could push up the dollar against the yuan."
The yuan dropped about 0.7 percent against the U.S. dollar on Thursday and has fallen about 3.2 percent against its rival thus far in 2014.
Reuters reports the PBOC implemented two key components of yuan weakness earlier this year, which were in February and April.
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