Yuan Fixing Today May Be Sign China Is Wary of Slump, RBC Says
- Drop against basket now at pace that triggered action: Trinh
- Early days yet, but keep an eye on coming fixings, Trinh says
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China’s yuan fixing on Tuesday gave a hint that the nation’s authorities may be growing concerned about the pace of the currency’s decline, according to Royal Bank of Canada.
The yuan’s reference rate was set at 6.518 per dollar Tuesday morning, a level that was slightly stronger than the 6.5210 average forecast of 19 traders and analysts in a Bloomberg survey. While within the range of projections, and only about 0.05 percent off, the differential means investors should watch out for more aggressive fixings in coming days, said Sue Trinh, head of Asia FX strategy at RBC Capital Markets in Hong Kong.