China’s Abrupt Yuan Reversal Reveals Anxiety Over War, Oil Shock

The Iranian war is forcing Chinese policymakers into abrupt shifts on the yuan.

Just days after easing a derivatives rule that signaled tolerance for yuan weakness, the People’s Bank of China abruptly reversed course, setting its daily reference rate stronger this week despite the dollar’s surge. The rare suddenness of the pivot, defying expectations for further decline, is aimed at cushioning risks from an advancing dollar and spiking oil prices amid Middle East turmoil.