Yuan exchange rate has solid basis to stay reasonably stable – PBOC

<ul><li>Yuan exchange rate has solid basis to stay reasonably stable at balanced levels</li><li>Reaffirms pledge to take action to correct one-sided and pro-cyclical activities</li><li>Will resolutely fend off currency overshooting risks</li><li>Will resolutely prevent speculation or incite clients to disrupt orders of FX market</li></ul><p>The verbal interjection here and the bid in the Chinese yuan today is helping to pin down the dollar, alongside the unwinding of USD/JPY longs after BOJ governor Ueda's remarks over the weekend.</p>

This article was written by Justin Low at www.forexlive.com.