China's Yuan Is Locked in a Tussle Between PBOC and Traders
- Central bank is using fixing to guide currency higher
- That’s not stopped yuan from closing weaker in recent days
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Almost every day, China’s central bank pushes up the yuan and traders push it down.
Officials have used the daily fixing to guide the currency higher against the dollar for eight of the past nine days, surprising market watchers with its strength. That’s failed to inspire confidence in the yuan, which has closed lower than the reference rate on all but one of those days. On Thursday last week, the yuan ended 0.4 percent weaker than the fixing, the biggest discount since January’s bout of volatility.