China seen allowing further yuan declines as trade tensions ease

Beijing

CHINA will probably let the yuan weaken further now that trade tensions with the US are receding and capital outflow pressures are easing, according to Natixis SA and DBS Group Holdings Ltd.

Last week's meeting between the nation's presidents has reduced the chances of the US labelling the Asian country a currency manipulator in the near term, said Alicia Garcia Herrero, chief Asia-Pacific economist at Natixis.