China’s central bank vowed to step up efforts to stabilize the nation’s currency after it dropped toward the lowest level in 15 years amid concern about the strength of the Chinese economic rebound.
The People’s Bank of China said late Friday Beijing time that it will adopt “comprehensive measures and stabilize expectations” about the currency. The PBOC will also “resolutely prevent risks of big fluctuations,” it said in its quarterly monetary policy report.
The monetary authority also vowed to increase support for the economy more broadly, as domestic demand is still “not strong.” The latest affirmation of that assessment came Friday morning, with manufacturing activity contracting again in June and other sectors failing to build momentum.
China’s yuan dropped to a seven-month low against the dollar in the wake of that news, taking its declines this quarter to more than 5%. The currency is less than 1% away from a 15-year low seen in November.
