USD at its weakest against the CNY since mid-November - BBH

Analysts at BBH note that the USD lost 0.6% against the Chinese yuan and at a little below CNY6.86, the dollar is at its weakest against the yuan since mid-November. 

Key Quotes

“While this likely reflects the broadly weaker dollar, China's overnight repo rate jumped 23 bp to 2.40%.  This does not seem to be tied to the short squeeze officials engineered early this month in the offshore yuan.  Instead, the onshore pressure comes from the tightening of conditions ahead of the Lunar New Year holidays.  The PBOC has tried to offset the shortage by injecting a relatively large amount (net CNY270 bln or ~$39 bln) the most since last January.  The Lunar New Year holiday runs from January 27 through February 2.”