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China Ramps Up Yuan Support With Fixing, Borrowing Measure Tweak
The yuan jumped after China stepped up its support for the managed currency with a stronger-than-expected reference rate and a change to its capital curbs to lure inflows. The People’s Bank of China set its daily fixing at 7.1466 per dollar, 680 pips stronger than the average estimate in a Bloomberg survey and the largest bias since November. It also adjusted some rules to allow companies borrow more from overseas, opening up the door for more foreign capital inflows. The offshore yuan surged as much as 0.7% to 7.1802, while the onshore rate jumped by a similar magnitude. The PBOC’s reference rate limits the ... (full story)