Offshore Yuan Rises From Five-Year Low as PBOC Puzzles Markets
- Currency advances after initial plunge on weaker PBOC fixing
- Foreign-exchange reserves decline by a record $108 billion
PBOC Cuts Yuan Fixing by Most Since August
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The offshore yuan strengthened for the first time this week amid speculation the central bank propped up the exchange rate after setting a weaker fixing that sent it into a tumble.
The currency swung from a 0.3 percent gain to a 0.7 percent loss and back in the space of about 30 minutes, spurring talk of intervention and creating confusion about what the central bank is trying to achieve. The yuan turmoil sent mainland shares into a spiral, forcing an early trading halt for the second day this week.