China’s central bank sets daily yuan reference rate above market expectations, signaling potential depreciation pressure.
The People’s Bank of China set the USD/CNY reference rate at 6.8150, compared with a forecast of 6.7733. The move allows the yuan to trade within a 2% band around the fix, reflecting recent currency volatility.
Earlier, the PBOC left its one-year and five-year loan prime rates unchanged at 3.0% and 3.5%, respectively, matching expectations. The yuan’s weaker-than-expected fix follows a period of heightened market uncertainty amid geopolitical tensions and economic data.
Traders are monitoring the yuan’s movement closely as the deviation from forecasts may signal policy shifts or external pressures on the currency.