Yuan Rises From Five-Year Low Amid Bets PBOC Supporting Currency
- China doesn’t want too weak a rate to affect fixing: OCBC
- MSCI rejection adds to downward pressures, Barclays says
MSCI Spurns China's A-Shares for a Third Time
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The yuan pulled back from a five-year low to climb the most in more than a week amid speculation China’s central bank is supporting the currency.
The monetary authority doesn’t want excessive declines because that would weaken the next day’s fixing as well, said Tommy Xie, an economist at Oversea-Chinese Banking Corp. in Singapore. He was referring to the People’s Bank of China formula of setting the yuan’s daily reference rate, which uses the 4:30 p.m. price as a key input.