PBOC Fuels Depreciation Talk as It Weakens Fixing for Sixth Day
- China may need to step up efforts to ease concerns: Scotiabank
- Currency’s decline an intentional policy choice, MUFJ says
PBOC Weakens Yuan Fixing for Sixth Day
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China’s central bank weakened the yuan’s reference rate for a sixth day, the longest run of cuts in nine months, amid speculation policy makers will allow further declines as the dollar rises.
The next possible target is 6.83 against the greenback, with a potential Federal Reserve interest-rate increase supporting the dollar, said Shaun Osborne, chief foreign-exchange strategist at Bank of Nova Scotia in Toronto. The People’s Bank of China may need to step up efforts to prevent market fears over any sharp depreciation, according to a Scotiabank report written by Singapore-based foreign-exchange strategist Qi Gao.