I posted earlier on likely moves from the People's Bank of China to slow down the drop for the yuan:
- Yuan has had a one-way ticket to weakness. The PBOC have been supportive of the devaluation, a lower yuan is a form of stimulus for the export sector. The rapid pace of the fall is expected to result in the PBOC moving to slow the descent.
Which is what we have today. While the CNY is weaker, its been set not nearly as weak as was expected:
USD/CNH has dropped (CNH is the offshore yuan, its gained from its earlier lows on the back of the PBOC CNY reference rate today)
