[explanation here] ). But for China, which is now in easing mode, and is increasingly concerned what rate differential will do to the Chinese economy once the Fed begins tightening, the drop in the dollar appears to not be nearly enough and on Thursday, the Chinese central bank set the yuan’s reference rate at the weakest relative to expectations in a month. The PBOC set the daily reference rate at yuan fixing at 6.3542 per dollar, which as shown below was 60 pips weaker-than the average estimate of 6.3482, the biggest discount relative to expectations in over a month. The…