China cuts yuan-dollar rate for third day
China's central bank on Thursday allowed its yuan currency to drop against the dollar for a third straight day, although the devaluation was smaller than ones earlier this week.
The People's Bank of China, or PBOC, cut its so-called guiding rate against the dollar by 1.1% but also issued assurances that the currency was not in free fall. The yuan later strengthened against the dollar.
On Tuesday, the PBOC slashed the benchmark rate nearly 2% in what it called a "one-time correction."
However, it then dropped the rate again Wednesday by a further 1.6%. The yuan is down roughly 3% against the dollar since it began its slide.
During a press conference in Beijing on Thursday, the PBOC attempted to downplay speculation that the yuan would be further devalued.
"After a two-day adjustment, the (yuan) has gradually returned to a more market-oriented level," the central bank said.
The unexpected interventions have nevertheless roiled financial markets in recent days, though global stocks stabilized Thursday.
In a Tuesday statement, the International Monetary Fund welcomed changes to the way China determines its exchange rate, saying it would "allow market forces to have a greater role in determining" that rate.
A weakened yuan boosts China's export competitiveness on international markets.
