China’s central bank is using its daily yuan reference rate to curb the currency’s rally as its recent outperformance during the Iran war boosts bullish sentiment. Volatility in the People’s Bank of China’s fixing has dropped to the lowest since early March, signaling efforts to limit fluctuations within the 2% trading band. The yuan’s strength, driven by resilience to energy shocks, has prompted pushback against one-way bets that could hurt exports. Analysts say the PBOC has shifted to a neutra

2026-04-17

China’s central bank is using its daily yuan reference rate to curb the currency’s rally as its recent outperformance during the Iran war boosts bullish sentiment. Volatility in the People’s Bank of China’s fixing has dropped to the lowest since early March, signaling efforts to limit fluctuations within the 2% trading band. The yuan’s strength, driven by resilience to energy shocks, has prompted pushback against one-way bets that could hurt exports. Analysts say the PBOC has shifted to a neutral stance, aiming to prevent overly rapid appreciation while stabilizing FX markets.