China Maintains Yuan Defense After Currency Nears Red Line
- PBOC sets daily fixing close to previous level seen last week
- Yuan has weakened toward edge of fixed range against dollar
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China stuck to a pattern of keeping yuan weakness contained as pressure from a resilient dollar and poor investor sentiment pushes it toward a policy red line.
The People’s Bank of China kept its daily reference rate for the managed currency broadly unchanged, implying to traders that yuan stability is key. China sets the so-called fixing at 9:15 a.m. local time, around which the currency is then permitted to trade in a 2% range.