Chinese Yuan Stabilizes with Ongoing PBOC Backing

The Chinese yuan exhibited a minor increase on Thursday, finding support from yet another notably robust daily midpoint fixing initiated by the People’s Bank of China (PBOC). This action reflects the central bank‘s heightened unease over the yuan’s weakness and its implementation of various measures to bolster the currency.

During this month, Chinese state-owned banks were observed intervening in currency markets, aiming to reinforce the yuan. The currency has been under mounting strain due to deteriorating sentiments surrounding China.

Although the yuan remains in proximity to its lowest levels in nine months, attention remains largely focused on potential additional stimulus measures that may be introduced by Beijing.