China’s Central Bank Extends Yuan Support After Offering Reassuring Rhetoric

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The central bank-backed Financial News said Beijing has ample tools to stabilize the currency market even if the yuan suffers “panic” selling. Photo: Bloomberg

(Bloomberg) — China’s central bank extended support for the yuan via a stronger daily reference rate, a day after its flagship newspaper reassured investors that authorities have sufficient ammunition to stabilize the weakening currency.

The People’s Bank of China (PBOC) set its so-called yuan fixing at 7.2098 per dollar Thursday, 360 pips stronger than the average estimate in a Bloomberg survey, marking the largest such gap since November. The fixing limits the onshore yuan’s moves by 2% on either side.