People walk past China's central bank or People's Bank of China in Beijing Tuesday, Aug. 11, 2015. (AP Photo/Andy Wong)
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China's central bank said Thursday there was no reason for the yuan to fall further given the country's strong economic fundamentals, helping to restore calm to jittery global markets after it devalued the currency earlier in the week.China's decision to devalue the currency Tuesday by pushing its official guidance rate down 2 percent sparked fears of a "currency war" and roiled global financial markets, dragging other Asian currencies to multiyear lows.Though the yuan opened slightly weaker Thursday, the spot rate was only about 0.1 percent below the guidance rate, the closest it has been since November, as the central bank tried to slow the sharp sell-off that has knocked around 3.2 percent off the currency since Monday's close.Tuesday's devaluation followed a run of weak economic data and resulted in the biggest one-day fall in the yuan since 1994, raising market suspicions that China was embarking on a longer-term depreciation of its exchange rate that would make Chinese exports cheaper.Weighed down by weak exports, sluggish domestic demand and a cooling property market, growth in the world's second-largest economy is expected to slow from 7.4 percent in 2014 to 7 percent this year, its slowest pace in a quarter of a century.
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