RMB-based HK interbank lending rate back to normal levels

By FXStreet FXStreet (Bali) – RMB-based Hong Kong interbank lending rate has come down to a one-week low at 3.61% today, near the average of the last 6 months.

The drop means that borrowing offshore yuan overnight is more affordable, which could partly explain the upward pressure seen in USD/CNH, as the pair breaks above 6.60.

The overnight Yuan HIBOR traded as high aas 66.8% during Tuesday, as PBOC intervention in USD/CNH (epic squeeze of CNH shorts) led to CNH liquidity dry up.
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Source:: FX Street