China Sends Warning Signal to Yuan Bears Before G-20 Meeting
- Yuan gained Tuesday after PBOC moves to shore up currency
- Signals suggest traders bracing for the G-20 to trigger move
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China’s central bank is making it clear to yuan bears that short-term declines are no sure thing, especially in the run up to a crucial meeting at the end of this month.
The People’s Bank of China set its daily reference rate for the currency at higher than market watchers expected for a 10th straight day on Wednesday, the longest run since September. The strong bias on Tuesday was the largest since Bloomberg began releasing fixing forecasts in August 2017. The central banks also announced plans to sell bonds in Hong Kong in June -- which would support the offshore rate.