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Yuan approaches China's red line for intervention

Sharp depreciation tests Beijing's tolerance

The Chinese currency hit a one-year low against the dollar, raising the prospect of a market intervention or capital controls.   © Reuters

SHANGHAI -- The yuan touched a one-year low on Thursday, sparking concerns that the currency will weaken past the threshold that in the past has triggered China's monetary authorities to intervene in the market or impose capital restrictions.

After the People's Bank of China set the yuan's reference rate at 6.7066 per dollar early Thursday, the yuan weakened as far as 6.77, a level last seen in July 2017.

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