REUTERS
For a second straight day, the People's Bank of China on Thursday set its daily guidance rate at its weakest level in more than four years, Reuters reported.
The People's Bank of China lowered the national currency exchange rate to the level of 6.42 yuan to the dollar, according to Reuters.
As reported earlier, the People's Bank of China significantly weakened the yuan by nearly 2% on August 11, a move that was billed as free-market reform but which raised concerns about the currency's stability. The Chinese currency to the U.S. dollar fell by 4.6% within three days after that. However, in early November the yuan crept back to 6.32 per the U.S. dollar.
Read alsoChina's economy continues contracting despite authorities' effortsOn November 30, the International Monetary Fund included China's currency to the IMF's group of international reserve currencies. It is the first time an additional currency has been added to the SDR basket and the biggest change in its composition in 35 years. Last set in 2010, the basket is currently 41.9% dollar, 37.4% euro, 11.3% sterling and 9.4% yen. The yuan would not join until October 2016, allowing reserve managers time to prepare.