CHINA’S monetary authorities Thursday ramped up efforts to defend the country’s currency by relaxing rules to allow companies to borrow more overseas and adjusting a daily benchmark.

The People’s Bank of China set its daily fixing at just under 7.15 per U.S. dollar, the largest bias since November. It also adjusted some rules to allow companies borrow more from overseas, opening up the door for more foreign capital inflows.

The yuan’s spot value onshore strengthened more than 0.8% to a high of 7.1620 per dollar, before last fetching 7.1750.

The currency, which is down nearly 4% so far this year, is under pressure from slowing exports and rising yields in other major markets.

The central bank said in a statement it raised a parameter on cross-border corporate financing under its macro-prudential assessments to 1.5 from 1.25, effective immediately. The ratio dictates the maximum any company can borrow as a proportion of its net assets.

China made a similar move in October to aid the yuan, when it dropped to fresh 2008 lows against the dollar. (SD-Agencies)