The People's Bank of China seems to like being enigmatic, throwing the market a curve ball as it fixed the yuan weaker against the dollar than many expected. Dealers had thought the firmer fix on Tuesday meant Beijing was signalling it wanted the yuan's fall to slow, or even stop. The result has been a drop in the offshore yuan back toward Monday's trough, while the market waits for some clarity on Beijing's intentions. Malaysia is set to be the latest to intervene to support its currency, and Japan sounds closer to pulling the trigger every day. Still, the market is clearly betting the yen will keep falling unless, and until, the Bank of Japan backs away from its yield curve policy.

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Persons: Wayne Cole, Ueda, Lagarde, it's, That's, Christine Lagarde, Fed's Jerome Powell, Kazuo Ueda, Andrew Bailey, Edmund Klamann Organizations: People's Bank of, Dealers, Wall, Journal, Ministry of Finance, Bank of Japan, Bank's, OECD, Bank of England, Thomson Locations: Wayne, People's Bank of China, Beijing, Monday's, Washington, China, Asia, Malaysia, Japan, Bank's Sintra, Sintra , Portugal