PBOC Eases Support for Yuan as Short Covering Fuels Rebound

(Bloomberg) — The People’s Bank of China (PBOC) pulled back its daily support for the yuan to the lowest in a year on Wednesday, at least by one measure.

The gap between market estimates and the daily reference rate — a gauge of official support for the managed currency — has now almost vanished, having been close to record levels for much of the last few months. The yuan has pared much of this year’s losses against the dollar in recent days amid broad weakness in the greenback in the region and an unwind of leveraged short positions.