China Sets Weaker Yuan Fix in First Sign Record Rally May Slow
- Currency up 4.1% this quarter on strong economy, yield premium
- PBOC may relax capital controls to slow advance, Citi says
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China set its daily yuan fixing at a weaker-than-expected level, the first signal that policy makers may want to rein in this quarter’s rapid appreciation.
The People’s Bank of China’s reference rate was set at 6.7872 on Tuesday, after the spot rate fell 0.51% overnight. That’s almost 60 basis points weaker than the average estimate in a Bloomberg survey, the largest gap in about two months.