Currencies
PBOC Extends Yuan Support After Offering Reassuring Rhetoric
- Yuan has slid in recent weeks amid divergent monetary policy
- China’s central bank seeks to assure against continuous slump
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China’s central bank extended support for the yuan via a stronger daily reference rate, a day after its flagship newspaper reassured investors that authorities have sufficient ammunition to stabilize the weakening currency.
The People’s Bank of China set its so-called yuan fixing at 7.2098 per dollar Thursday, 360 pips stronger than the average estimate in a Bloomberg survey, marking the largest such gap since November. The fixing limits the onshore yuan’s moves by 2% on either side.