The People’s Bank of China sets the daily reference rate above analyst expectations, signaling potential depreciation pressure on the yuan.
The People’s Bank of China set the USD/CNY mid-point at 6.8288, weaker than the Reuters estimate of 6.7822. The move allows the yuan to trade within a 2% band around the reference rate, a mechanism designed to manage volatility.
Analysts had anticipated a stronger fix, reflecting recent dollar weakness and stabilizing capital flows. The last comparable fix was set at 6.7964 on Friday, with consensus pointing to a modest strengthening trend.
The yuan’s depreciation against the dollar may reflect broader market concerns over China’s economic outlook and regulatory risks, though no immediate market reaction was reported.