The Chinese authorities sent a clear signal via the daily currency fixing that it wants to maintain stability in the yuan as the U.S. amps up pressure on the nation’s imports.
The People’s Bank of China set the reference rate for onshore trading stronger than 6.9 per dollar on Friday, even after the offshore currency tumbled to as low as 6.9786 in the wake of President Donald Trump’s announcement about new tariffs. That helped widen the gap between the onshore spot rate and the fixing to the most since June 10.
The yuan was down 0.55% at 6.9359 a dollar as of 11:29 a.m. in Shanghai, taking the drop this week to 0.8%. A gauge of expected swings in the yuan over the next month slid to the lowest level in nearly two years on Wednesday.