China’s Yuan surges after reassurance from central bank governor

The yuan surged on Monday after the central bank’s chief reassured investors there is no basis for persistent depreciation.

The reference rate of the yuan gains over 1.2 percent from Feb. 5, the previous trading day before the week-long Spring Festival holiday.

The rise dispelled market concerns and came after comments from Zhou Xiaochuan, governor of the People’s Bank of China.

In an interview with magazine “Caixin,” Zhou says there is no basis for the continued depreciation of the yuan and that “China would not let market sentiment be dominated by speculative forces.”

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