China Expected to Defend Yuan at Key Level as Losses Mount
- Traders see authorities intervening if yuan nears 6.7 a dollar
- Currency’s rout has fueled declines in emerging-market assets
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China is likely to step in and defend the yuan should it fall to a key psychological level, as breaking through that point risks worsening sentiment in the country’s beaten down financial markets.
Most of the 18 traders and analysts surveyed by Bloomberg say policy makers will act to slow the currency’s slide once it gets close to 6.7 per dollar in China’s onshore market. That’s about 1 percent below current levels. The yuan reversed an early decline on Friday, climbing 0.2 percent to 6.6132 per dollar as the euro led broad gains against the greenback.