May 24, 2012
Translated by Tang Xiangyang

The euro weakened by almost one percent against the yuan during Wednesday’s trading session to close at 7.9980, as fears of an imminent Greek exit from the currency union reduced the price of a euro to less than 8 yuan for the first time since June 2002.

The Euro has now fallen by 5 percent since April, compared to a 7 percent decline from January 2011 to December 2011.

The euro's depreciation has already scared investors. Tan Yaling, president of the China Forex Investment Research Institute, attributed the currency’s weakness to the exaggerated influence of the “Greece problem”.

“It’s normal to see a currency appreciate and depreciate. It won’t always go the same way,” he said.

Cheng Yu, a currency trader at the Industrial and Commercial Bank, said that the euro will continue depreciating in the short term, but that, in the long term, the eurozone would benefit from a Greek departure. 

Links and Sources
Beijing News: 欧元对人民币10年来首度破“8”