China Money Rate Rises to Four-Month High on Intervention Bets
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China’s overnight money-market rate rose to the highest level since April on speculation intervention by the central bank to support the currency will drain liquidity.
The People’s Bank of China bought yuan last week to stabilize the exchange rate in the wake of an Aug. 11 devaluation and said it would step in to curb large fluctuations. Interbank rates increased even as the PBOC pumped in 120 billion yuan ($18.8 billion) into the financial system Tuesday via the biggest offering of seven-day reverse-repurchase agreements since January 2014.