China Steps In to Halt Yuan Slide, Sets Much Stronger Fixing Rate
• China's central bank set a much stronger yuan fixing than expected, widest gap vs estimates in 5 months • Aims to prevent sharp declines in the currency after recent slump • Set midpoint rate at 7.0948 per dollar, 1,311 pips stronger than estimate • Yuan allowed to trade in 2% band around midpoint • Expected central bank will guard against further weakness and smooth sharp jumps