China state media says yuan will be defended if it depreciates too rapidly

<p>China Daily with the report saying that Chinese authorities are closely watching renminbi exchange rate movement and would take further action to defend the currency if it depreciates too rapidly amid the seemingly unfinished US rate hike cycle, experts said on Thursday.
</p><ul><li>"From a policy perspective, it is very important that the speed of depreciation of the renminbi does not accelerate too rapidly because that can then influence expectations of renminbi depreciation and then it can feed on itself," said Rob Subbaraman, head of global macro research at Nomura, a Japanese financial services group.</li></ul><p><a href="https://www.chinadaily.com.cn/a/202307/07/WS64a748dda310bf8a75d6db2a.html" target="_blank" rel="nofollow">Link here for more.</a></p><p>From the chart of the daily CNH (below) you can see the People's Bank of China has slowed the yuan drop this past week. </p><p>Its not a convincing change in trend IMHO, just a sideways shuffle for now:</p>

This article was written by Eamonn Sheridan at www.forexlive.com.