The yuan bears are beginning to get fenced in, giving China’s central bank the chance to add ammunition in the battle for economic growth. Authorities have managed to curb yuan depreciation pressures after a two-month fight that saw the sale of dollar reserves, stronger daily reference rates and a barrage of verbal support. The discount of three-month yuan forwards over the spot price, a reflection of the outlook for the currency as well as interest rates, has narrowed to the least since an Aug. 11 yuan devaluation. “The message was that we are done and that’s it -- don’t fight against us,” said Song Yu, a Beijing-based economist at Goldman Sachs Group Inc. and the top...
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