The People’s Bank of China set the daily USD/CNY reference rate above market expectations, signaling potential yuan depreciation pressure.
The People’s Bank of China set the USD/CNY reference rate at 6.8175, weaker than the 6.8041 estimate. The fix allows the yuan to trade within a 2% band around the rate, a mechanism designed to manage volatility.
Analysts had anticipated a stronger yuan fix, reflecting recent dollar weakness and stabilizing Chinese economic data. The deviation suggests the central bank may be tolerating or encouraging a modest depreciation amid external pressures.
No immediate market reaction was reported, but the move could weigh on sentiment if perceived as a shift in policy stance.