SHANGHAI China's central bank on Friday raised the value of it official guidance rate by the most since the yuan was revalued in 2005, as the authorities ramped up their defense of the currency.
The official yuan midpoint was set at 6.8668 per dollar prior to the market opening, 639 pips or 0.9 percent firmer than the previous fix, according to Thomson Reuters data.
The strength in the midpoint comes after a sharp rise in the offshore yuan spot rate over the past two trading days in response to a spike in yuan borrowing rates.
It is not clear if Chinese authorities have engineered the spike in yuan borrowing rates in Hong Kong this week.
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