Yuan fluctuation was not engineered, economist says

Beijing didn't engineer the yuan's recent decline, according to Industrial Bank's chief economist Lu Zhengwei, as accusations surfaced that it had orchestrated the drop in preparation for a wider trading band.

In a report on Tuesday, the Shanghai-based economist pointed to the changes in the central bank's daily reference as proof that sustained appreciation against the US dollar was part of Beijing's policy planning.

The daily reference dropped just 0.8 percent to 6.143 on Tuesday from a record high of 6.093 on Jan 14, whereas the market rate slumped by 2.7 percent to 6.202 on Tuesday from a record of 6.037 on Jan 10.