The Chinese yuan climbed on Wednesday against the world's reserve currency, reversing seven consecutive days of slumping against its cross-Pacific rival, according to Bloomberg.
The renminbi rose after authorities with the Asian nation said there was nothing uncommon about the monetary unit's recent poor performance. Chinese economic fundamentals are healthy, according to the Chinese State Administration of Foreign Exchange, which also said recent volatility is normal as is the increase and reduction of the exchange rate.
"The PBOC is behind the yuan weakness to counter hot money inflows and to tame expectations as it prepares for band widening," economist Nathan Chow with DBS Group Holdings Ltd. in Hong Kong told Bloomberg on Wednesday. "Given it's engineered by the PBOC, the drop won't be too significant as it's still in the control of policy makers."
The yuan rose roughly 0.24 percent on Wednesday against the U.S. dollar, registering its top advance since early May 2013. The yuan's recent string of losses checked in at about 1.5 percent.
Preoccupations are growing about billions of dollars lost if the yuan continues losing while bets on it to appreciate are strong, according to The Wall Street Journal.
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