The People’s Bank of China sets the daily reference rate above market forecasts, signaling potential yuan depreciation pressure.
The People’s Bank of China set the USD/CNY central parity rate at 6.8187, weaker than the 6.7720 estimate. The move allows the yuan to trade within a 2% band around the fix, reflecting recent depreciation trends.
Analysts had anticipated a stronger fix amid efforts to stabilize the currency. The yuan’s decline follows broader USD strength and concerns over China’s economic recovery, contrasting with earlier expectations of tighter control.
Markets may interpret the weaker fix as a signal of reduced intervention, potentially increasing volatility in Asian FX markets.