Currencies
PBOC Starts Paring Yuan Support Amid US Exceptionalism Doubts
The People's Bank of China (PBOC) building in Beijing.
Source: Bloomberg
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Doubts over US exceptionalism are giving China a much needed break from strongly defending its currency, as the yuan’s strength allows it to dial back support via its daily reference rate.
The gap between the People’s Bank of China’s daily reference rate versus narrowed to 675 pips on Monday, the least since early December. While the so-called fixing remains near the strongest level since November, its smaller spread with estimates signals weakening official support for the currency.