Rate Hike: Yuan and Dollar

rate hike: Now the questions are Should China central bank intervene to prevent the yuan from falling further And can the market absorb the recent dive in the yuan value Before answering those questions, we need to understand the reasons behind the yuan fall, according to Global Times China. The decline in the yuan against the dollar has accelerated in recent weeks because the dollar has strengthened on the expectation of a rate hike by the US Federal Reserve. If it follows its downward trajectory, the yuan is set to break the 7-per-dollar mark. Compared with the yuan, the euro and the Japanese yen have dropped even more sharply against the dollar, the latter sinking around 8 percent against the dollar since the election of Donald Trump. The label yuan devaluation is actually highly misleading. Meanwhile the yuan fell by just over 3 percent. (news.financializer.com). As reported in the news.