Yuan Fix Is Back in the Spotlight
- Top forecaster says reference rate good indicator of policy
- Central bank uses fixing to signal unease after yuan rally
Weaker Yuan Fixings Signal China Currency Concerns
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For Sean Yokota, one has to just look at the yuan’s daily fixing to decipher China’s foreign-exchange policy. Especially these days.
The currency’s most-accurate forecaster says the difference between his estimate model -- based on overnight changes in major exchange rates -- and the official reading is a good indicator of where the People’s Bank of China wants the yuan to be. The formula elbowed its way into heightened focus last week when a set of weaker-than-expected fixings spurred speculation the authorities were signaling displeasure at the yuan’s Asia-beating surge.