China Maintains Yuan Support Via Daily Fixing Amid Trade War
- Focus is on whether US-China tensions will de-escalate: OCBC
- Central bank sets fixing at strongest level since Nov. 8
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China extended its support for the yuan by setting its daily reference rate for the managed currency at a level stronger than 7.2 per dollar, as escalating trade tensions with the US add to the depreciation pressure on the yuan.
The People’s Bank of China set the so-called fixing at 7.1693 per dollar on Wednesday as onshore markets reopened after Lunar New Year holidays. The central bank has been holding the fixing at levels stronger than 7.2 per dollar to shield the yuan from the dollar’s gains since Donald Trump won the US Presidential election in November.