Chinese yuan dropped on Tuesday despite the PBOC’s injection of $74 billion into the country’s banking system the day before in a bid to strengthen the currency.
Separately, China’s foreign ministry spokesman Geng Shuang said the country is not looking to boost its exports through devaluing the yuan. “The yuan’s exchange rate is mainly determined by market supply and demand. It floats in both ways, which means there are ups and downs,” Geng said.
His comments came after U.S. President Donald Trump’s brickbats last Friday in a tweet, slamming China and the EU on deliberately controlling their currencies.
The Chinese yuan depreciated against the U.S. dollar as the USD/CNY pair saw an increase of 0.36% to 6.8177 on Monday.
