China sent its most powerful signal yet on its discomfort with the yuan’s weakness by setting its reference rate for the currency with the strongest bias on record.
The People’s Bank of China set the fix at 454 pips stronger than the average estimate in a Bloomberg survey of analysts and traders. The move marks the 11th straight day of stronger-than-expected fixings by the PBOC and follows a reduction in foreign-currency reserve requirements for financial institutions announced Monday, both measures aimed at propping up the currency.
