China supports Yuan (CNY USD) with stronger than expected fix

China stepped in to support the yuan for the third time this week, again signaling a limit to its tolerance for currency weakness.

The People’s Bank of China set its daily benchmark rate for the managed currency at a higher-than-expected level, as it did on Monday and Tuesday. The so-called fix came in at 7.2208 per dollar, 311 pips stronger than the average estimate in a Bloomberg survey and the biggest premium since November.