China to allow wider yuan trading range

Hong Kong

CHINA will allow the yuan to trade in a wider range against the US dollar, the State Council said, without giving a timing or scope for the potential adjustment.

Flexibility will be increased, the Cabinet said in a statement on Friday that focuses on supporting the nation's trade after an index of factory activity fell to a 15-month low. The exchange rate will be kept at a basically stable level, the State Council said. The yuan traded in Hong Kong fell the most in almost three weeks on Friday, and its one-month implied volatility surged to the highest since July 14.