From earlier this week:
It seems like we might have found the line where Chinese authorities are comfortable drawing for now and that seems to be around 6.80 as the yuan battles back this week, poised for its strongest weekly showing since 2005 - when China de-pegged the yuan from the dollar.
That may be in part also contributing to the dollar's lack of momentum in the past few days, as yuan moves also tend to influence risk and dollar sentiment; vice versa.
Beijing has already responded with more easing measures this week to bolster the economy and the relief to Chinese equities is certainly a welcome one. The efforts in trying to revive the housing market is also propping up confidence and that is helping with the yuan's snapback this week.