People's Bank of China (PBoC) strengthened Yuan for fifth consecutive day today via its fix, most probably in an attempt to keep it stable against Dollar and against basket of currencies. Yuan's movement just few weeks back, might have spooked that Chinese authorities, when Yuan dropped to lowest level in 5 years and spread between offshore and onshore counterpart widened to record more than 2%.

Today, PBoC strengthen fix by 0.01% to Yuan 6.5528 per Dollar.

Latest movement in Yuan indicates that PBoC might be micro-managing the currency. In last nine trading days USD/CNY has lurked from 6.587 to 6.552 per Dollar.

It has taken other steps to curb excessive shorting of Yuan, especially in Hong Kong market. It is regularly draining liquidity from that market via state run banks and requested information on transactions and speculative activity and to restrict lending.

China's state run media has also taken fire and swords to speculators, including well known billionaire investor George Soros, known as man who broke Bank of England.

PBoC's efforts however had little impact on offshore Yuan for past five days, which is not that volatile anymore but spread is again rising from parity.