China's yuan and its forwards had a weekly decline on concern the global econ-omic recovery is faltering.
The People's Bank of China set the currency's daily rate 0.14 per cent lower on Friday as Asian currencies weakened. Morgan Stanley cut its forecast for global growth this year, citing an "insufficient" policy response to Europe's sovereign debt crisis. The bank estimates expansion of 3.9 per cent, down from a previous forecast of 4.2 per cent, according to a report on Thursday.
"The yuan fixing is in response to the global market developments," said Teck Kin Suan, an economist at United Overseas Bank Ltd. in Singapore. "The markets are responding to a potential recession in the US and the European debt situation isn't clearly resolved."
The yuan dropped 0.05 per cent last week to 6.3930 per dollar, according to the China Foreign Exchange Trade System. The currency slid 0.08 per cent on Friday. In Hong Kong's offshore market, the yuan rose 0.06 per cent to 6.3785 last week.