Yuan Traders Get Whiplash as Currency Tumbles Fastest in Asia

The drama highlights the tussle between the state and traders. Since the PBOC devalued the yuan two years ago, policy makers have used fixing guidance, verbal jawboning, direct intervention and capital controls to limit big swings in the exchange rate. Despite that, volatility is surging, even before a crucial Communist Party gathering in October. At least traders know that next week there will be calm in the onshore currency — China’s financial markets are closed all week for holidays.

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