China’s central bank sets the daily yuan fixing above market expectations, signaling potential depreciation pressure on the currency.
The People’s Bank of China set the USD/CNY central parity rate at 6.7917, compared with an estimate of 6.7706. The move allows the yuan to trade within a 2% band around the reference rate, a mechanism designed to manage volatility.
The previous closing rate was 6.7690, indicating a slight weakening in the yuan’s guidance. Analysts had anticipated a stronger fix, reflecting recent dollar strength and market sentiment.
The adjustment follows broader trends in currency markets, where the yuan has faced downward pressure amid economic uncertainties and monetary policy divergence.