The People’s Bank of China set the midpoint for the yuan’s trading band against the dollar at 6.3969 on Monday, up only 0.01% from last week in the second straight marginal strengthening of the currency’s trading band after three straight downward moves last week, The Financial Times reported. The central bank had announced on Tuesday it was modifying the mechanism used to calculate the so-called “fix” for the onshore renminbi in a move that it claimed would give markets a greater role in determining the level of the subsequent fix, and on Sunday warned investors to expect more “two-way volatility” for the currency.
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