PBOC’s Yuan Fix Is Losing Its Bite as Bearish Sentiment Mounts
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China’s yuan is plumbing fresh lows for the year with the central bank’s favorite tool for guiding the managed currency quickly losing its effectiveness.
The onshore yuan on Monday closed at the largest discount since December to the People’s Bank of China’s daily reference rate, a sign Beijing is failing to bolster worsening confidence caused by weaker-than-expected economic data and heightening credit risks. Policymakers have been setting their daily fixing for the currency at stronger-than-forecast levels since late June.