China Starts Stealth Fightback Against Powell’s Strong Dollar
- Currency fixing shows strongest bias since February 2020
- Onshore yuan had touched a fresh two-year low Wednesday
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China took steps to support the weakening yuan Thursday, after a resurgent dollar pushed the currency to a fresh two-year low.
The People’s Bank of China set its yuan reference rate at a stronger-than-expected level for the managed currency, as a widening monetary policy gap with the US continued to weigh. It was seen a signal the central bank wants to slow the pace of yuan depreciation, which has accelerated as aggressive bets on US rate hikes boosts the greenback.