The Chinese yuan faced volatility following Beijing's stimulus announcements, revealing investor doubts about the measures' effectiveness in supporting the struggling economy.
Investor sentiment towards the yuan has turned bearish, driven by an unexpected decline in consumer inflation and concerns about the government's narrow focus on domestic consumption.
The stimulus aims to support state banks and address local government debt, but uncertainty about specific dollar commitments has led to currency instability.
Market participants are revising their outlook on the yuan, with mixed signals from policymakers likely leading to further depreciation in the short term.
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