Traders will keep a closer eye than usual Monday on China’s daily yuan reference rate, looking for signs of official pushback after the currency weakened toward a no-go area last week.
After the yuan slipped to within a whisker of its permitted trading range against the dollar Wednesday, before a four-day holiday weekend, the so-called fixing may signal whether Beijing will support the currency more vigorously or allow a moderate depreciation. As a regional currency anchor, any message which triggers yuan volatility can quickly spill over into other markets.
