Regional currencies look to China for FX stability
Chinese government intervention in its currency market is the only way to curb regional FX volatility, say market watchers. It came after a second day of pain for Asian currencies as the renminbi continued to fall.
Asian currencies, which have been sent on a downward spiral by China’s devaluation, can only be stabilised by government intervention in the renminbi, say market observers.
Beijing’s currency moves over the past two days have affected regional currencies as the renminbi has been allowed to fall further.
Yesterday the People’s Bank of China (PBoC) set the renminbi’s daily fixing rate at Rmb6.3306, close to the previous day’s closing price of Rmb6.325.
The market priced in furth…
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