The People’s Bank of China sets the daily reference rate above market expectations, signaling potential yuan depreciation pressure.
The People’s Bank of China set the USD/CNY reference rate at 6.8088, weaker than the Reuters estimate of 6.7929. The yuan is permitted to trade within a 2% band around this rate, reflecting recent depreciation trends against the dollar.
The prior close stood at 6.7880, with the latest fix marking a notable deviation from expectations. Analysts had anticipated a stronger yuan amid broader USD weakness, but the PBOC’s move suggests caution over external pressures.
Markets reacted with mild risk-off sentiment, as Asian equities extended losses and US futures pointed lower. The yuan’s adjustment adds to volatility in global currency markets.