Investors push the central bank limit on RMB

Investors pushed the limits of the government-dictated value of the renminbi for the second consecutive day, the Wall Street Journal reported. The People’s Bank of China (PBoC) sets a daily rate for the currency, allowing investors to buy or sell at no more than a 0.5% deviation from that price. Yet traders pushed the currency to the weakest level the PBoC permits. Before this week, traders have pushed this limit only three times since the currency was effectively un-pegged from the US dollar. A push against the daily limit is often seen as a sign that the PBoC should re-adjust its peg. Others believe the range of trading fluctation should be widened, perhaps to 1% or 2%, to allow for more flexibility in the value of the currency. The value of the renminbi has sagged recently, as investors flee to safer assets.