LONDON, Aug 3 (Reuters) - China's offshore yuan CNH=EBS rose sharply on Friday after the country's central bank said it would adjust its forward foreign exchange risk reserve requirement ratio to 20 pct from zero.
The yuan hit a session high of 6.8270, up 0.8 percent on the day.
China's offshore yuan has been under pressure on worries the months-long trade dispute between the United States and China will hurt its economy. The yuan weakened to 14-month lows earlier this week.
"It's a statement of intent from the #PBoC (People's Bank of China) and suggests they don't want to see $USDCNY trading above 7.00 anytime soon. Whether they have the willingness to prevent this is another matter (outflow pressures will probably remain if U.S. tariffs increase)," Viraj Patel, a forex analyst at ING, said on Twitter.
The bank also said it would take counter-cyclical measures to keep forex markets stable based on market conditions.
