May be a fundamental shift in trade flows?
They don’t want to spend fx to defend?
Looking to let it go to get back to where it was vs yen at 80/$ as other EM’s seem to be doing?
By Anjani Trivedi
March 10 (WSJ) — The People’s Bank of China set the daily reference rate Monday at 6.1312 to the dollar, compared with 6.1201 to the dollar on Friday. The 0.18% change represented the largest one-day move in the rate since July 2012. The central bank determines the rate each day, and then allows the currency to trade as much as 1% higher or lower. Since 2005, it has gradually moved the rate up, allowing the yuan to strengthen 33%, but in the last month has pushed it lower, seeking to discourage speculators who have channeled money into the economy in hopes of benefiting from the currency’s rise. On Monday, the yuan touched 6.1458 against the dollar, compared with 6.1260 late Friday in New York. The offshore yuan, which is freely traded outside China, weakened as far as 6.1309 from a closing level of 6.1095 on Friday. Premier Li Keqiang said last week at the National People’s Congress, China’s annual legislative session, that Beijing would expand the currency-trading band.