Yesterday, China's currency firmed against the dollar after the People's Bank of China offered more reassurances to markets worried by the currency's recent sharp falls. The Financial News, a publication backed by the PBOC, said on Wednesday: "Even if the yuan exchange market has a panic unilateral trend, there are abundant tools to calm the 'herd effect' and ensure the smooth operation of the foreign exchange market."
That reassurance was directly followed up on on Thursday as the bank set another stronger-than-expected midpoint fixing for the fourth-straight day this week, which traders believe is an attempt to prevent the yuan from weakening too fast and too far.
Source: reuters.com