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Yuan may stumble, but will not fall

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BEIJING, Aug. 12 (Xinhua) -- Chinese yuan extended its decline on Wednesday but is unlikely to depreciate significantly as the central bank and stable fundamentals will not allow the currency to go into freefall. The spot rate fell about three percent to its lowest level since October 2012 when the central bank reformed the exchange rate formation system on Tuesday. The central parity rate fell 1.6 percent, to 6.3306 against the U.S. dollar on Wednesday. In a latest statement released on Wednesday, the central bank said there was no reason for the yuan to depreciate further. A relatively robust economy, current account surplus and the...

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