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China's yuan exchange rate is set to weaken after a period of stability to catch up with other currencies' recent depreciation and to reflect the expectation that the economy could get worse before getting better due to the coronavirus outbreak, analysts say.
The yuan has eased by 0.6 per cent against the US dollar this year, much less than the South Korean won’s decline of 2 per cent and the Singapore dollar’s drop of 3 per cent. The euro has tumbled by as much as 3.6 per cent.
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