China’s Firm Hand Restores Calm After Asia’s Wild Currency Moves
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China signaled that it’s not ready to let the yuan strengthen dramatically against the dollar, helping restore calm to Asia’s foreign-exchange market after days of extreme volatility.
The People’s Bank of China kept its daily reference rate for the yuan steady as it returned from a public holiday, pushing back against a recent rally in the offshore version of its currency — and making clear to traders that the dollar’s rout in Asia won’t all be one-way traffic. The country said it would hold a briefing on policy measures to stabilize the market on Wednesday.