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The yuan fell sharply on Friday as speculation officials tried to calm the downturn. Chinese stocks have jumped.
The currency added 0.1 percent to 6.7757 per dollar at 2:21 pm. after falling up to 0.5% earlier, while the offshore rate recovered a loss of 0.9%. We have seen a large Chinese bank propose to sell the dollar when the yuan weakened to 6.81 this morning, according to traders. The bank stopped selling after the yuan reduced its loss, according to traders.
"The PBOC will let the yuan depreciate at best instead of letting it depreciate freely to avoid the risk of capital flight," said Ngan Kim Man, co-head of the Treasury at the Hong Kong branch of China Everbright Bank Co.
The Shanghai stock index rose 2.2%, recording a five-day series of losses, all gains having been recorded after noon break. The yield on 10-year government bonds rose 6 basis points to 3.5%, the largest increase since October
. Chen, a Shanghai-based analyst at KGI Securities Co. There are also hopes of further easing, and it would be reasonable for state funds to buy banks down, he said. .
Efforts by the authorities to end the rout have made the yuan the worst of the 30 major currencies of the past month. The rapid descent undermined confidence in other emerging countries and helped to plunge commodity prices. US President Donald Trump told CNBC that the Chinese currency "was falling like a rock", putting America at a disadvantage.
The yuan plummeted after the People's Bank of China weakened the daily reference rate of the currency in two years
– With the help of Emma Dai, Kana Nishizawa and Ran Li
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