China Escalates Battle Against Yuan Bears With Fixing Guidance
- PBOC issues most forceful guidance via fixing since October
- Onshore yuan has been falling toward weakest level since 2007
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China ramped up its efforts to stem losses in the yuan by offering the most forceful guidance since October through its daily reference rate for the managed currency.
The People’s Bank of China set the so-called fixing for the yuan at 7.2076 per dollar on Thursday compared to an average estimate of 7.2994 in a Bloomberg survey, the largest gap since October. The attempted boost for the currency comes as broad dollar strength combined with evidence of China’s sluggish economy helped push the onshore yuan toward a 16-year low on Wednesday.