The yuan has come under intense pressure in recent weeks on concerns about the outlook for the Chinese economy, the world's second largest, in part resulting from the ongoing tariff conflict with the US.
On Friday, the People's Bank of China appeared to respond to that pressure, announcing that it was reintroducing methods to keep the yuan's daily midpoint fixed to a relatively stable value.
Cnbc.com reports that in this case, Beijing is poised to fight the traders dragging the yuan's value lower against the dollar.
The yuan's value against the dollar has factored into the trade war because its decline has lessened the impact of American tariffs on Chinese products. US president Trump promptly accused Beijing of unfair practices on the foreign exchange front. A weaker currency can help a country's export performance by making its products cheaper to those in other countries and thus more competitive in global markets.
