Currencies
China Boosts Yuan Support by Setting Stronger-Than-Expected Fix
- Daily reference rate nears closely-watched level of support
- Breach of 7.20 could open up the door for further yuan decline
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China increased its support for the yuan by setting a significantly stronger-than-expected daily reference rate, after the managed currency weakened to a one-year low in the previous session.
The People’s Bank of China set the so-called fixing at 7.1934 per dollar, stronger than a closely watched line of 7.2 for the rate. Its premium over the average estimate in a Bloomberg survey also expanded from the previous session and is at the widest since August.