The PBOC said that it has resumed the use of its counter-cyclical factor in the yuan fixing mechanism
Today, the onshore yuan was fixed at 6.8508 against the dollar and ends the Chinese trading day at 6.8171. That was the strongest close for the yuan in an onshore session since 1 August. Although the yuan did trade lower on Friday, that was after the onshore markets were closed since the PBOC announced the news in the evening time of Asian trading.
At the time, it was no surprise to see the offshore yuan trading higher following the announcement. It's been a painful last few months for the yuan against the greenback but things are starting to look like they may be on the verge of turning around.
As of now, both the onshore and offshore yuan is trading 0.06% lower against the dollar for the month of August. At the peak of their declines this month, the onshore yuan was trading 1.70% lower against the greenback while the offshore yuan traded 2.04% lower.
