PBOC Sets Stronger-Than-Expected Fix as Yuan Hits Two-Year Low
- Currency drop spurs bets on further PBOC action to stem losses
- Yuan fix set stronger than forecast for fourth straight day
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China set its daily reference rate for the yuan at a stronger-than-expected level for a fourth day, after the offshore currency tanked to a two-year low on the back of a hawkish Federal Reserve.
The People’s Bank of China set its fixing 96 pips stronger than the average forecast in a Bloomberg survey with analysts and traders. The reference rate, which limits the onshore yuan’s moves by 2% on either side, was set stronger after the offshore unit slid past 6.9 for the first time since 2020.