PBoC announces cut to 7-day reverse repo rate to 1.70% from 1.80%

People’s Bank of China has cut its interest rate for the 7-day reverse report to 1.7% from 1.8%

• PBOC will strengthen the counter-cyclical adjustment to “better support the real economy”

The rate cut is, at the margin, a headwind for yuan … but the strengthening of the counter cyclical adjustment is the opposite!

The rate cut will take effect immediately, today.

USD/CNH had rallied earlier, not doing a whole lot on the new info:

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