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Goldman analysts downgrade outlook on yuan

A vendor holds Chinese Yuan notes at a market in Beijing, August 12, 2015. REUTERS/Jason Lee

NEW YORK (Reuters) - Goldman Sachs analysts said on Thursday they shifted to “an outright negative view” on the Chinese yuan from a “more cautious stance” in March, citing its “a weak link” in the world’s second biggest economy management of its currency.

If the yuan, also known as renminbi CNY=CNYFIX=SAEC, weakens more against the U.S. dollar, it may result in tighter financial conditions including lower U.S. stock prices .SPX and the Federal Reserve to raise interest rates at a slower pace than current forecasts, Goldman analysts said in a research note.

Reporting by Richard Leong

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