Yuan halts rally after PBOC cuts dollar-buying costs

SHANGHAI: A long rally in China’s yuan was halted on Friday after authorities made their strongest pushback yet on months of gains, holding the currency’s trading band steady and tweaking a policy to cut the cost of buying dollar forwards. But traders and analysts said the broader strengthening trend may remain intact despite the latest steps.

The onshore yuan was last trading at 6.8566 as of 0700 GMT, 66 pips lower than the previous late session close, on track to snap a 10-day winning streak.