The Chinese yuan plummeted to a 16-day low of 6.8427 against the US dollar in Asian deals on Wednesday. If the Chinese currency drops further, it may likely target the 6.847 level. At yesterday's North American session close, the dollar-yuan pair was quoted at 6.8375.
The People's Bank of China has set today's central parity rate for the dollar-yuan pair at 6.8370. The pair is allowed to strengthen or weaken 0.5% from the parity rate.
The World Bank said yesterday that a stronger economic growth in China will boost activities in countries in the East Asia and Pacific region. The global lender forecast real GDP growth in developing East Asia to slow to 5.3 percent this year from 8 percent in 2008.
The World Bank said China remains a bright spot in the region and the global economy amid signs that economic activity may be bottoming out. A recovery in China, likely to begin this year and take full hold in 2010, should contribute strongly to the region's recovery, the bank added.
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