PBOC guiding yuan lower: Sources

Chinese central bank officials directed the recent decline in the value of the yuan as they prepare to widen the currency’s trading band, The Wall Street Journal reported, citing unnamed sources. The decision was taken during a two-day currency-policy meeting that ended February 18, the people said. In the past week, the People’s Bank of China has been guiding the yuan lower against the dollar by setting a weaker benchmark against which the yuan can trade. By guiding the yuan weaker, Beijing intends to thwart short-term speculators betting on a continued rise and to introduce greater two-way volatility into its trading.