Bank may introduce 'counter-cyclical factor' in setting the yuan-dollar rate

The central bank's preemptive move to fine-tune the renminbi's pricing model will help ease the selling pressure facing the currency in the second half of the year, after helping push up the yuan on Thursday, analysts said.

The People's Bank of China revealed last week it was considering introducing a "counter-cyclical factor" in setting the reference rate of the yuan against the dollar. While details of the adjustment have not been disclosed, the yuan's daily fixing was set at 6.8090 on Thursday, its strongest level since November.