PBOC lifts yuan mid-point by most in nearly 15 months, largely matching f’casts
SHANGHAI, Aug 28 (Reuters) – China’s central bank lifted its official yuan midpoint by the most in nearly 15 months to 6.8052 per dollar on Tuesday, reflecting spot yuan performance from a day earlier and broad weakness in the greenback overnight.
The official yuan midpoint was 456 pips, or 0.67 percent, firmer than the previous fix of 6.8508 and largely matching forecasts.
The move in Tuesday’s official guidance rate was the biggest one-day strengthening in percentage terms since June 1, 2017.
The guidance rate was 4 pips lower than Reuters’ estimate of 6.8048 per dollar.
China’s yuan finished Monday afternoon trade at a near 4-week high to the dollar after the central bank revived a “counter-cyclical factor” in its daily fixing to support the currency, halting a record 10-week slide that rattled global markets and irritated Washington.
The dollar fell to a four-week low overnight, as risk appetite improved and investors unwound some safe-haven bets on the currency after the United States and Mexico reached a trade deal. (Reporting by Winni Zhou and Andrew Galbraith; Editing by Sam Holmes)
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