Chinese Yuan Weakens

The Chinese Yuan weakened past the all-important 6.5 per dollar mark, losing nearly 0.40% to the U.S. Dollar. Currently, the Dollar is hovering at a 9-month high against most of its major peers, and Chinese traders are unsure if the Yuan can catch up to other currencies. Plus, rising raw material costs are causing concern among exporters. The Chinese government even left its benchmark interest rate unchanged, hoping to bolster the economy. This move, however, is contrary to economist expectations, with some believing that several basis pointcuts are coming in the next year.