China Gets More Aggressive in Pushing Back Against Weaker Yuan

  • PBOC sets second strongest bias for yuan since surveys began
  • Portfolio outflows are set to rise on yield differential: ANZ

The People's Bank of China headquarters in Beijing.

Photographer: Qilai Shen/Bloomberg
Lock
This article is for subscribers only.

China took the most aggressive step yet in its latest battle to bolster the yuan, setting its reference rate for the currency with the second-strongest bias on record.

The People’s Bank of China fixed the yuanBloomberg Terminal against the dollar at 249 pips stronger than the average estimate in a survey of market participants -- which Bloomberg started compiling in 2018. Traders said at least one state-owned bank was also seen selling the greenback late in the afternoon, further helping to support the yuan.