China’s yuan strengthened for a second day after the People’s Bank of China (PBOC) reportedly urged the banks to prevent any “herd behavior” and momentum-chasing moves in the forex markets.
The USD/CNY pair was down 0.17% to 6.8217 at 1:00AM ET (05:00 GMT). The offshore yuan, on the other, lost momentum as the USD/CNH pair climbed 0.06% to 6.8249.
The yuan was one of the worst performing currency in Asia this year as it has weakened more than 6% against the dollar in the past three months amid an intensifying trade dispute with the U.S. Signs of a slowing economy also pushed the Chinese currency down.
The U.S. said on Wednesday that it would begin slapping 25% duties on an additional $16 billion in Chinese goods in two weeks.
