Currencies
China Boosts FX Support as Yuan Heads Toward Policy Red Line
- Gap between PBOC fixing and estimate is widest since April
- Onshore yuan approaches weak end of its permitted trading band
This article is for subscribers only.
China stepped up its support for the yuan as the managed currency weakened toward a policy no-go area — the edge of its allowed trading range against the dollar.
The central bank set a daily reference rate that was stronger than analyst estimates by the most since April on Wednesday, with the currency approaching a record low offshore this week. State-owned banks continued to scale back their yuan lending in Hong Kong, making it costlier for investors to build short positions, traders said.