Yuan Falls to 15-Month Low Versus Basket as Fixing Lags Dollar
- Further drop in index may spur central bank support, OCBC says
- Reference rate shows China doesn't want excessive gains: DBS
This article is for subscribers only.
The yuan fell to a 15-month low versus a basket of currencies as a smaller-than-estimated increase in the central bank’s fixing spurred speculation that China is trying to limit gains against the dollar.
The monetary authority raised its daily reference rate by 0.32 percent, compared with a 1.1 percent drop in a gauge of the greenback’s strength. The difference prompted economists to question the importance of market forces in the fixing, with Oversea-Chinese Banking Corp. saying it appears that the rate continues to be a tool to guide investor expectations.