China: Reference rate for the yuan higher even though the USD firmed - BBH

Research Team at BBH, suggests that there has been much interest in the fact that the PBOC set its reference rate for the yuan higher (dollar lower) even though the US dollar firmed against the other currencies that officials say it tracks. 

Key Quotes                               

“The onshore yuan is 0.3% stronger, which looks likely its largest advance in at least six weeks.  The offshore yuan is up closer to 0.5%.  There has been a suspicion in some corners that Chinese officials are nearing the end of their willingness to let market forces push the yuan down.  After being sidelined, the yuan's day-to-day performance (and fix) may become more important again as the market looks closer for policy signals.”