The People’s Bank of China sets the daily reference rate above market expectations, signaling potential depreciation pressure on the yuan.
The People’s Bank of China set the USD/CNY reference rate at 6.8291, weaker than the 6.7883 estimate. The move allows the yuan to trade within a 2% band around the midpoint, 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 6.8123 on Friday, with the yuan trading near the lower end of its permitted range in recent sessions.
The adjustment comes amid broader market focus on China’s monetary policy stance and external pressures, including geopolitical risks and commodity price fluctuations.