PBOC Manages Yuan’s Decline With Strong Support Via Fixing
- Daily yuan fixing gap to estimates at widest since April
- China’s currency has fallen to lowest since November
The yuan has fallen to its lowest since November and is close to the weak edge of its trading band amid broad dollar strength and pessimism about the prospects for the Chinese economy.
Photographer: Paul Yeung/BloombergThis article is for subscribers only.
China’s support for the yuan Friday signaled its desire to manage its decline, as broad strength in the dollar kept the currency close to a policy no-go area.
The People’s Bank of China set its daily reference rate for the managed currency at 7.1196 per dollar. While the level was slightly weaker than Thursday’s, the difference between the so-called fixing and forecasts was the widest since April.