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PBOC May Shore Up Yuan Further: 21st Century Business Herald

CHINA PRESS
MNI (Singapore)

The People’s Bank of China will likely introduce new and forceful measures to shore up the yuan after it flagged a desire to take action when necessary on Monday, 21st Century Business Herald reported Tuesday citing traders. More wholesale investors have started to reduce CNY short positions and shifted focus to the possibility that the improved Chinese economy would attract overseas capital to enter the A-share market after the PBOC’s monetary supply data in Aug delivered positive signs. However, traders are betting a weaker yuan may not eventuate should the U.S. dollar index remain above 105. The traders note more Asian countries - besides China and Japan - may enhance their currency support if further U.S. Federal Reserve rate hikes boost USD.

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