China Acts to Limit Yuan Plunge, Bringing Some Relief to Markets

China took steps to limit weakness in the yuan, providing some stability to global financial markets in the wake of the Aug. 5 rout, and said it won’t depreciate the currency to be competitive.

The People’s Bank of China on Aug. 6 set the daily currency fixing stronger than analysts expected and announced the planned sale of yuan-denominated bonds in Hong Kong. The moves, which came after the U.S. labeled the country a currency manipulator, helped drive the yuan up 0.2% a day after it sank the most since 2015. The central bank also rejected the accusation it manipulates the ...