PBOC sets USD/CNY reference rate at 6.7910, above Reuters estimate of 6.7695, signaling modest depreciation pressure.
The People’s Bank of China set the USD/CNY reference rate at 6.7910 for Wednesday’s session, down from 6.7990 the previous day but above the 6.7695 Reuters estimate. The fix suggests a slight weakening bias for the yuan amid broader market expectations.
The central bank’s move follows its use of tools like the Loan Prime Rate and foreign exchange interventions to manage currency stability. Analysts had anticipated a stronger fix, reflecting recent dollar strength and China’s monetary policy stance.
The yuan’s performance remains closely tied to PBOC guidance, with the central bank balancing growth objectives and exchange rate stability.