The yuan pulled back from a five-year low to climb the most in more than a week amid speculation China’s central bank is supporting the currency. The monetary authority doesn’t want excessive declines because that would weaken the next day’s fixing as well, writes Bloomberg, because The People’s Bank of China’s formula for setting the yuan’s daily reference rate uses the 4:30 p.m. price as a key input. The currency rose 0.19% to 6.5840 a dollar as of 4:53 p.m. in Shanghai, China Foreign Exchange Trade System prices show. It fell as much as 0.12% earlier, weighed down by MSCI Inc.’s decision to leave Chinese stocks out of its benchmark indexes.
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