Investing.com - The Chinese yuan inched toward stability on Thursday since a surprise sharp weakening earlier this week that led to volatile markets, opening flat against Wednesday's close and even slightly stronger than the morning central parity fixing.
On Wednesday, the yuan opened trade at 6.4300, sharply lower than Tuesday's close of 6.3231, following something of a pattern in the two days since the PBOC announced its new central parity fixing method, opening sharply lower to match the drop in the central parity and then hovering around that opening price for the rest of the day.
Thursday's opening price, which failed to match the drop in the fixing, may indicate that the yuan is on its way back to stability. Ma Jun, the chief economist of the PBOC's research bureau, again played down talk of depreciation in state media on Thursday morning, arguing that the currency is near its equilibrium level.
He said the PBOC is more than capable of stabilizing the exchange rate.
The PBOC set the yuan central parity at 6.4010 Thursday, down another 1.1% against Wednesday's fixing, following Wednesday's 1.6% and Tuesday's 1.86% devaluations.