PBOC says two-way fluctuations in yuan will become normal going forward
PBOC head of monetary policy, Sun Guofeng, remarks
- FX moves are dependent on global economy
- PBOC will keep yuan basically stable on a reasonable, balanced level
- Constant yuan appreciation or depreciation will not be sustained
There's a bit of a hint there in the last remark that any major one-way move in the yuan - especially if it is one that moves too far, too fast - won't exactly be to their liking.
There was a decent nudge higher in the yuan to start the new year that saw it appreciate past 6.50 against the dollar but the move has since stalled as state banks came in to purchase dollars since last week.
That has also played a part in somewhat keeping the dollar decline limited in recent days.