As yuan nears lowest level in 14 yrs, traders brace for more PBOC pushback

Traders are bracing for more pushback from China’s central bank as the yuan approaches the lowest level in 14 years.

The onshore yuan has lost about 4% over the past month, trading within 1% of 7.2 per dollar, a level it hasn’t reached since 2008. The People’s Bank of China has already stepped up its currency defense, but it did little to stop the depreciation.

Breaking the psychologically important level may prompt officials to take more measures to slow the depreciation in an attempt to discourage capital flight and keep financial markets stable. Possible counter-attacks include delivering stronger yuan fixes, adding