China's yuan rebounds from 2-year low on firmer-than-expected guidance

SHANGHAI: China's yuan rebounded on Thursday from a two-year low against the dollar, helped by a firmer-than-expected official guidance, which markets participants saw as a sign authorities are becoming increasingly uncomfortable with rapid yuan losses.

Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.8536 per dollar, 148 pips or 0.22% weaker than the previous fix 6.8388, the softest since Aug. 31, 2020.