Offshore Yuan in Record Five-Day Advance as China Soothes Nerves
- PBOC keeps currency fixing stable for fourth day in a row
- Interbank rates in Hong Kong drop from unprecedented levels
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The yuan traded in Hong Kong posted the biggest five-day gain on record and interbank rates in the city slid off levels described as “murderous” as China’s central bank sought to soothe investor nerves frayed by the worst-ever start to a year for both the currency and stocks.
China’s exports unexpectedly rose in December, suggesting that the yuan’s decline since an Aug. 11 devaluation is beginning to boost the nation’s competitiveness, while speculation the monetary authority propped up its exchange rate this week kept the offshore yuan at a premium to the mainland rate for much of the day. This followed efforts by officials to talk up the yuan on Monday and efforts to step up restrictions on currency outflows.