CHINA’S central bank yesterday fixed its central rate for the yuan currency at a four-week low, data showed, despite comments by chief Zhou Xiaochuan that there was no basis for further depreciation.

    The People’s Bank of China yesterday set the yuan at 6.5452 to US$1, down 0.17 percent from Friday, according to the China Foreign Exchange Trade System. The fix was the weakest since Feb. 3, previous figures showed.

    The weaker currency hurt sentiment on the stock market, with the benchmark Shanghai Composite Index dropping sharply in the morning.

    Zhou on Friday told a seminar on the sidelines of the G20 finance ministers’ meeting in Shanghai that the yuan — also known as the renminbi — would be stable.

    “There is no basis for persistent renminbi depreciation from the perspective of fundamentals,” he said.

    Authorities only allow the yuan to rise or fall 2 percent on either side of the daily fix to prevent volatility.

    But a shock currency devaluation in August, which saw the normally stable unit guided down nearly 5 percent in a week followed by another drop in January, raised suspicions China is pursuing a currency war to make its exports cheaper. Zhou denied those accusations Friday.

    In a communique, G20 countries Saturday pledged to avoid “competitive devaluations,” though the document made no mention of China. (SD-Agencies)