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Though the yuan CNY=CFXS opened slightly weaker on Thursday, the spot rate was only about 0.1 percent below the guidance rate CNY=SAEC, the closest it has been since November, as the central bank tried to slow the sharp sell-off that has knocked around 3.2 percent off the...

China’s decision on Tuesday to allow markets greater sway in setting the currency’s level triggered the biggest sell-off in 21 years and roiled global markets. The Chinese authorities assured everyone that this is a one-time step. The peso closed at 46.215 to the U.S....

In an effort to calm volatile markets, the PBOC said late last week it sees no reason for the yuan to fall further. Commonwealth Bank currency strategist Richard Grace said the Australian dollar will come under pressure from the lower yuan, as well as from factors such as lower...

China’s central bank on Friday raised the yuan currency against the US dollar by 0.05%, the national foreign exchange market said, ending three days of falls after a surprise devaluation.

“The central bank has the ability to keep the renminbi basically stable at a reasonable and balanced level”, she said.

In addition, to its attempts to restore export volumes it is also rumoured that the Chinese are hoping to achieve reserve currency status.

Yesterday, China’s central bank set the guidance rate at 6.4010 per US dollar, weaker than the previous fix of 6.3306.

So the notion that China is evolving into a more market-oriented country is to impose a particularly American perspective on Chinese actions. Impose trade barriers if Beijing will not comply. By 1994 it was 8.62 RMB to the dollar (the lowest ever on the record).

The value of the yuan has gradually returned to market levels as the discrepancy between the central parity rate and the actual trading rate has been largely corrected after declines in the past few days, Zhang Xiaohui, assistant governor of the People’s Bank of China...

“In the long run the renminbi is still a strong currency”, PBOC assistant governor Zhang Xiaohui said, adding that China was running a trade surplus and had a sound fiscal position and rich foreign exchange reserves.

The yuan tumbled 1.8 percent, the most in two decades, on the day of the devaluation and declines have since moderated as the PBOC intervened via agent banks and signaled its support for the currency.

China cut the reference rate for its currency for the third straight day, on Thursday after the surprise devaluation of the yuan this week unsettled global financial markets. The PBoC also “dismissed claims it intended to weaken the yuan by 10% to support exports as...

“The central bank will frequently intervene in the foreign-exchange market in the next three months because it needs to ensure the yuan is stable”.

In the previous two days, the central rate – around which the yuan is allowed to trade in a band of plus or minus 2 percent – had been marked 1.9 and 1.6 percent lower, respectively.

China’s move to cut the value of the yuan to 6.3306 to a US dollar from 6.2298 Tuesday signaled Beijing was moving to a more market-determined exchange rate from a de facto peg that had propped up the value of the currency for so long.