China Ramps Up Yuan Support With Fixing, Borrowing Measure Tweak
- Currency jumps as much as 0.7% in offshore market after move
- PBOC may adopt more measures to boost sentiment, analyst says
This article is for subscribers only.
The yuan jumped after China stepped up its support for the managed currency with a stronger-than-expected reference rate and a change to its capital curbs to lure inflows.
The People’s Bank of China set its daily fixing at just under 7.15 per dollar, 680 pips stronger than the average estimate in a Bloomberg survey and the largest bias since November. It also adjusted some rules to allow companies borrow more from overseas, opening up the door for more foreign capital inflows.