PBOC Intervenes to Stabilize Yuan Amid Dollar Strength
China's central bank set a stronger-than-expected yuan reference rate at 7.15 per dollar, marking its largest deviation from analyst forecasts since April. The MOVE comes as the U.S. Federal Reserve's reluctance to signal rate cuts bolstered the dollar, pressuring emerging market currencies.
The offshore yuan rebounded 0.2% to 7.1991 after touching a June low of 7.2146. ANZ's Khoon Goh notes authorities are actively managing volatility: "The fixing rate was chosen to limit further weakness despite strong dollar momentum."
Hedge funds retreated from short-dollar positions as currency dynamics shifted, prompting Beijing's most assertive intervention since spring. Regional currencies mirrored the yuan's partial recovery, though dollar dominance persists.
