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China's Central Bank Ends Its War With Yuan Bears

  • Chinese leaders seen growing more comfortable with weak yuan
  • BofA’s FX strategy chief sees currency falling 5% by year-end
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Yu: China Can't Afford Any More Policy Mistakes

Bloomberg News
Updated on

For traders betting on a weaker yuan, the People’s Bank of China is turning from foe to friend.

Six months after the monetary authority intervened to crush short sellers, Bank of America Merrill Lynch, Pacific Investment Management Co. and Societe Generale SA say the PBOC is more likely to guide the currency lower than to prop it up. Despite official pledges of exchange-rate stability last weekend, bears argue that China’s leaders are growing more comfortable with yuan weakness after a 3.3 percent slump since March failed to spark a repeat of January’s market turmoil.