Justin had the news from the People’s Bank of China here on Monday:
And on Wednesday we saw the Bank trying to support CNY at the reference rate setting:
And again today:
Offshore yuan may have seen the memo but its not paying it much heed:
The PBoC supported the CNY through the last bout of USD/CNY super-strength. They’ll be doing the same again this time around, wary of capital outflow if they let the yuan drift too much lower. They’ll be hoping US inflation doesn’t take off higher and the Fed pauses … or reverses.
This article was written by Eamonn Sheridan at www.forexlive.com.
