PBOC Intends To Slow Down Yuan Depreciation

The People’s Bank of China aims to increase some friction at the 6.9 level to slow the pace of yuan depreciation against the U.S. dollar, but doesn't want to make too many interventions, Caixin reported citing Zhang Yu, chief macro analyst at Huachuang Securities. The analysts have observed the use of the countercyclical factor for four consecutive days by the PBOC, Caixin notes. The central bank is more concerned about any building expectations of one-way trade, instead of supporting the 7 level, Caixin said citing an unnamed FX trader. The yuan's depreciation trend has begun to show signs of bottoming out after breaking through 6.92 against the dollar on Monday, but holding at 6.9 level in the past four days, Caixin added.