The renminbi fell 0.75 percent against the US dollar Monday, the first day of a wider trading band, China Business News reported Tuesday. The Chinese currency is allowed to rise or fall 2 percent from a daily reference rate set by the central bank, double the previous range. It was the largest single-day fall for the exchange rate. The People’s Bank of China had set the renminbi’s daily midpoint against the US dollar 25 pips stronger than Friday’s close. The renminbi is unlikely to appreciate this year given that the ratio of China’s current account surplus to gross domestic product has fallen significantly, UBS A.G. was quoted as saying in a research report. However, JP Morgan Chase & Co. expects the renminbi to strengthen to 5.95 against the greenback by the end of the year, the report said.
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