Above the fracas

11 December 2014 By Andy Mukherjee

The yuan has held relatively steady against the dollar this year, even as the yen and the euro have tumbled. A weaker exchange rate could help boost Chinese exports and inflation. But companies’ large foreign-currency debts make competitive devaluation an unattractive option.

This content is for Subscribers only

Context News

The yuan rose 0.2 percent against the U.S. dollar on Dec. 10, after sliding 0.5 percent over the previous two days.

The Chinese currency has weakened 2 percent against the U.S. dollar this year, compared with an 11 percent slide in the Japanese yen, a 9 percent drop in the euro and a 5 percent decline in the South Korean won.

China’s inflation rate hit a five-year low of 1.4 percent in November. Producer prices fell for a 33rd straight month, data released Dec. 10 showed.

Chinese exports grew 4.7 percent from a year earlier in November, the slowest pace since April.

Email a friend

Please complete the form below.

Required fields *