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China faces dilemma over yuan if Fed raises interest rates

If China allows the yuan to rise with the greenback, it eases fears of devaluation at the expense of the nation's exporters. If it permits further losses against the trade-weighted basket, it risks spurring destabilising outflows.


YUAN forecasters are struggling to agree on how China's central bank would respond to a stronger dollar.

That helps explain why predictions for the yuan against a basket of peers for the rest of 2016 range from a gain of 5.6 per cent to a drop of 12 per cent in a Bloomberg...

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