China's Yuan Steady After Central Bank Signals its Support
- Yuan surged Friday on news about counter-cyclical factor
- Currency remains Asia’s worst performer in past three months
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China’s yuan was stable in the onshore market following Friday’s surge, after the central bank signaled that it’s taking action to support the currency through its daily fixing.
Starting this month, banks resumed using an adjustment in the daily pricing of the currency against the dollar, known as the counter-cyclical factor, to mitigate the bias toward a weaker yuan, the People’s Bank of China said late Friday. The fixing has been consistently stronger than expected recently, according to Bloomberg surveys. China had suspended use of the factor in January.