For the first time in six days, PBOC decided to strengthen the Yuan fix (+0.1% to 6.5385). This sent offshore Yuan surging back to pre-RRR-Cut levels, ensuring that (for the very short-term) speculators don’t get any ideas about piling into a Yuan short (again). This action followed the suspension of China’s Open Market Operations (due to lack of interest from traders).
Following this morning’s surprise RRR Cut, The PBOC decides now is the time to strengthen Yuan…
- *PBOC RAISES YUAN FIXING BY 0.1% TO 6.5385/USD
- *PBOC RAISES YUAN FIXING FIRST TIME IN SIX DAYS
Wiping out the Yuan swing from today…
Let’s see how long this holds.
PBOC’s Chen had some comments on the matter (just don’t tell the Japanese)
- *YUAN DEPRECIATION HAS LIMITED IMPACT ON HELPING EXPORTERS: CHEN
- *YUAN DEPRECIATION WILL INCREASE PROCESSING TRADE COSTS: CHEN
- *NOT MUCH ROOM FOR YUAN DEPRECIATION: PBOC’S CHEN
- *NO BASIS FOR CONTINUED YUAN DEPRECIATION: CHEN
In other words – Don’t short it, or else!
via Zero Hedge http://ift.tt/1SdZ0oj Tyler Durden