Why U.S. currency is falling in dollar price fight

China’s currency is being held up in the global markets as a tool to boost domestic consumption, despite the global financial crisis.

On Friday, the People’s Bank of China said it would lower the yuan to 6.4 US cents to fight the dollar’s fall against its Asian rivals.

The yuan is down almost 50% against the greenback in a year.

China’s currency has dropped to 6% from 6.8% a month ago and has been hit by a drop in consumer spending that has hurt growth and caused inflation to soar.

The government has already raised the minimum wage for its workforce to a minimum of 7,000 yuan ($130) per month from the current 7,800 yuan.

The minimum wage has been boosted from 7,500 yuan a month earlier, while workers now get a minimum wage of 8,000, the ministry said in a statement.