China Targets Yuan Bears With Most Forceful Fixing Guidance Ever

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Chinese authorities have been escalating their support for the embattled yuan over the past week, only to see it sinking in both onshore and overseas markets toward multi-year lows. Photo: Bloomberg

(Bloomberg) — China delivered its strongest ever pushback against a weaker yuan via its daily reference rate for the managed currency, as it sought to restore confidence to a market spooked by disappointing data and heightened credit risks.

The People’s Bank of China (PBOC) set its so-called fixing at 7.2006 per dollar compared to an average estimate of 7.3047 in a Bloomberg survey with traders and analysts. That was the largest gap to estimates since the poll was initiated in 2018.