Yuan Forwards Drop as PBOC Sets Reference Rate at Two-Month Low
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Yuan forwards fell as the central bank set the currency’s reference rate at a two-month low after a rally in the greenback.
The Bloomberg Dollar Spot Index, which tracks the currency against 10 peers, rose 2.3 percent in the four days through yesterday as data showing the U.S. economy is improving bolstered the greenback. The People’s Bank of China cut the yuan’s daily fixing by 0.03 percent to 6.1543 per dollar, the weakest level since Sept. 5.