LONDON (Reuters) – Wall Road financial institution JPMorgan (NYSE:) stated on Tuesday it was staying “bearish” on regardless of its current slide and that the nation’s central financial institution may look to step in to forestall the transfer accelerating.

“As spot foreign money weak spot and depreciation expectations are usually self-reinforcing, the Folks’s Financial institution of China would possibly discover it essential to introduce some circuit breaker, with stronger fixings (the central financial institution’s official every day FX charge) a preemptive transfer to forestall foreign money weak spot going non-linear,” JPMorgan’s analysts stated in a analysis word.

The yuan rallied on Tuesday after the central financial institution set its every day fixing stronger than market expectations for the second day in a row, bolstering hypothesis that authorities had been changing into much less tolerant of the foreign money’s weak spot.