China May Devalue Yuan By As Much As 15%: Report

By Markets MarketWatch Pulse

China's central bank is under pressure from key advisers to let the yuan quickly depreciate by as much as 15%, according to a Reuters report. As it has sought to guide its currency lower in recent months, China's central bank has spent billions of dollars to fend off speculators, who see betting against the yuan as a profitable trade. The central bank's advisers feel it would be better for a sharp depreciation, which would help protect China's debt-burdened companies. Chinese yuan traded in the onshore market fell to a five-year low Thursday as weak economic data encouraged investors to pile into bets against the currency. The report appeared to send U.S. stocks back toward their session lows.

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