Yuan Strengthens as PBOC Raises Fixing, Reserves Slow Decline
- Investors becoming more positive on currency, analyst says
- Non-PBOC institutions may be absorbing flow pressure: Goldman
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The yuan strengthened after China’s central bank raised its fixing for a fourth day and data showed a less-than-estimated drop in the nation’s foreign-exchange reserves.
The currency stockpile shrank by $28.6 billion last month, the smallest decline since June, to $3.2 trillion, the People’s Bank of China said on Monday. That’s lower than the $40.9 billion decrease predicted in a Bloomberg survey of economists, and compares with December’s record drop of $108 billion as the monetary authority supported the yuan.