China’s support for the yuan Friday signaled its desire to manage its decline, as broad strength in the dollar kept the currency close to a policy no-go area. The People’s Bank of China set its daily reference rate for the managed currency at 7.1196 per dollar. While the level was slightly weaker than Thursday’s, the difference between the so-called fixing and forecasts was the widest since April. China sets the so-called fixing at 9:15 a.m. local time, around which the currency is then permitted to trade in a 2% range. Chinese state-owned banks also increased support for the currency. They sold dollars in the ... (full story)