China’s Yuan Red Line Response Has Traders Eyeing Monday Fix
- Currency slid close to weak end of its allowed trading range
- Onshore foreign-exchange market to reopen after long weekend
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Traders will keep a closer eye than usual Monday on China’s daily yuan reference rate, looking for signs of official pushback after the currency weakened toward a no-go area last week.
After the yuan slipped to within a whisker of its permitted trading range against the dollar Wednesday, before a four-day holiday weekend, the so-called fixing may signal whether Beijing will support the currency more vigorously or allow a moderate depreciation. As a regional currency anchor, any message which triggers yuan volatility can quickly spill over into other markets.