Moody's changed its outlook on Chinese government debt to "negative" from "stable", citing uncertainty over authorities' capacity to implement economic reforms, rising government debt and falling reserves.
A trader from a Chinese commercial bank said recent interventions by state banks on behalf of the People's Bank of China (PBOC) "have really dampened the market mood as it sees no chance of big yuan swings under the PBOC's firm hand."
Traders said Tuesday's muscle-flexing by the central bank, guiding the midpoint stronger to offset the impact from weak manufacturing activity and an easing move, signalled that it is capable of maintaining the yuan's stability in a volatile economy.
On Wednesday, the central bank set the midpoint rate
In the spot market, yuan
The offshore yuan
Onshore yuan softened 0.1 percent against the euro
(Reporting by the Shanghai Newsroom; Editing by Richard Borsuk)