The Chinese renminbi posted its first annual decline this year since 2005, dipping 1 percent to 6.3676 versus the U.S. dollar. The currency had gained nearly 22.3 percent from July 21, 2005 — when the Chinese government abandoned the currency’s 8.11 peg to the greenback and allowed it to trade within a designated band — to the end of 2011.
Analysts say the falling yuan reflects a slowing economy, and further loosening of the exchange rate system will likely trigger further weakness, rather than strength, in the currency.
via CNBC
