China’s FX regulator says Will prevent yuan exchange rate from overshooting,

The State Administration of Foreign Exchange (SAFE) in the regulator:

• Will strengthen countercyclical supervision, improve the solvency,
  deposit reserve mechanisms
• Studying broadening
  the scope of foreign shareholders in non-bank institutions
• China’s forex market
  operation is resilient
• China’s forex market
  faces increasing adjustment
• China’s forex market
  has condition for steady operation in future
• China’s forex market
  remains reasonable and orderly
• Will pay high
  attention to changes in external environment
• Will prevent yuan
  exchange rate from overshooting, and prevent risks from abnormal
  cross-border capital flow

This is the offshore yuan, CNH, which trades without the +/- 2% restriction China imposes on the onshore yuan, CNY. The two never get too far out of line (depends how you define too far out of line course):

This article was written by Eamonn Sheridan at www.forexlive.com.