It was changing hands at 6.8116 at midday, 74 pips firmer than the previous late session close.Its offshore counterpart CNH=D3 rose to a high of 6.7818, its strongest since July 31. It traded at 6.8028 as of midday.Traders said the policy move had triggered some dollar selling since Friday night, but gains in the Chinese currency were capped by bargain hunting for cheaper dollars on Monday as many saw strong resistance at 6.8 per dollar for now.The PBOC introduced the “X” factor in May 2017 when the yuan was firming against a weaker dollar. But Goldman Sachs said it has been used in both direction at various times: to slow yuan gains and to curb yuan losses.Traders suspect the PBOC may already have been testing the waters in recent weeks for a re-activitation of the measure as the dollar continued to climb. It was last believed to have been used early this year, when the yuan was firming.U.S. But it had already posted the longest such losing streak since the exchange rate was unified in 1994.The yuan also pared some of its losses to the greenback to 4.5 percent year-to-date.

Source: Egypt Today August 27, 2018 05:26 UTC