China Taps Brakes on Yuan’s Rally With Another Weaker Fixing
- Daily reference rate was set weaker than expected by 43 pips
- Currency has surged more than 4% this quarter, near a record
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China’s yuan fixing was weaker than expected for a second day, reinforcing speculation that the central bank wants to slow the currency’s biggest quarterly rally since 2008.
The People’s Bank of China set its daily reference rate at 6.7986 per dollar on Wednesday, after the greenback strengthened overnight. That was 43 basis points weaker than the average estimate in a Bloomberg survey, following a gap on Tuesday that was the widest in about two months. The yuan dropped as much as 0.26% to 6.7997 before paring the loss to 0.06% as of 5:13 p.m. in Shanghai.