China is extending two lines of currency defense to support the yuan, pushing up funding costs in the offshore market and battling back once more with a stronger-than-expected reference rate for the managed currency.

The People’s Bank of China set its so-called fixing at 7.1992 per dollar compared to an average estimate of 7.3103 in a Bloomberg survey with traders and analysts on Tuesday. That was the largest gap to estimates since the poll was initiated in 2018.

Up Next

China Ramps Up Fight With Yuan Bears to Stop Selloff Spiraling