The Wall Street Journal: China’s PBOC guides yuan to highest level since devaluation

China’s central bank guided the yuan to its strongest level against the U.S. dollar since its surprise devaluation more than 2½ years ago on Tuesday, and market participants can’t agree why it has appreciated.

The People’s Bank of China set the dollar’s reference rate at 6.2816 yuan on Tuesday, putting the yuan CNYUSD, -0.3764% at its strongest since August 11, 2015. The yuan’s stronger so-called “fix,” which is partly based on the previous day’s close, followed a surge in its value on Monday afternoon. China’s central bank allows the currency pair to trade 2% above and below its reference rate each day.

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