China moves to support yuan again as Trump inauguration nears

Hong Kong

CHINA stepped into both its onshore and offshore yuan markets to shore up the faltering yuan for a second day on Wednesday, sparking speculation that it wants a firm grip on the currency ahead of US President-elect Donald Trump's inauguration.

The central bank set a stronger-than-expected daily trading midpoint for the yuan, state banks sold US dollars and borrowing rates for the offshore component of the yuan rose, all hinting at state intervention to stem losses in the currency.

The moves helped the yuan inch up 0.1 despite strength in the global US dollar index, while the offshore yuan hit a two-wee…