USD/CNY near 6.13 after PBOC Lowers Reference Rate

The yuan fell the most in more than two weeks as China’s central bank lowered the currency’s daily fixing by the most in a week.

The People’s Bank of China cut the reference rate, which restricts the onshore yuan’s moves to a maximum 1 percent on either side, by 0.06 percent to 6.1373 per dollar. The yuan has risen 2.3 percent this year and touched a 20-year high of 6.0802 per dollar in Shanghai last week.

“Chinese authorities would be quite interested in trying to stabilize the currency a bit,” said Cliff Tan, East Asian head of global markets research at Bank of Tokyo-Mitsubishi UFJ Ltd. in Hong Kong. “In both onshore and offshore markets, there’s been a lot of enthusiasm for the renminbi.”

Bloomberg

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