China’s yuan eases

SHANGHAI: China’s yuan eased against the US dollar on Friday as remarks from the annual economic meeting failed to excite investors, while the dollar reached a 2-1/2-week high.

China pledged to boost the budget deficit, issue more debt, and ease monetary policy to sustain economic growth, according to a state media report from the Central Economic Work Conference held on Dec. 11-12.

A separate readout of the meeting from state media kept a pledge to “maintain the basic stability of the exchange rate at a reasonable and balanced level”.

“It’s worth noting that China’s leadership has so far shown significant reluctance to undertake major direct stimulus to lift consumption,” said Alvin Tan, head of Asia FX strategy at RBC Capital Markets.