Yen Gains on China's Surprise Yuan Fixing, Kuroda's Policy Views
- Yuan fix was lower than models anticipated, RBC's Trinh says
- BOJ governor acknowledged stimulus limits in parliament
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The yen gained after China cut its daily yuan fixing by the most in six weeks, surprising investors who’d anticipated little movement before the Group-of-20 meeting this week and fueling demand for haven assets.
Japan’s currency rose to its strongest level since October 2014 versus the dollar. The People’s Bank of China reduced the reference rate for the yuan below what most models expected, according to Sue Trinh, head of Asian foreign-exchange strategy at Royal Bank of Canada in Hong Kong.