China’s central bank set the daily yuan fixing stronger than expected, signaling potential support amid currency volatility.
The People’s Bank of China set the USD/CNY reference rate at 6.7917, above the 6.7595 estimate from traders. The move allows the yuan to trade within a 2% band around the fixing, a mechanism used to manage daily fluctuations.
The fixing came in weaker than market expectations, contrasting with recent efforts to stabilize the currency. The prior day’s rate was 6.7812, and analysts had anticipated a stronger yuan amid ongoing trade tensions and capital flow pressures.
No immediate market reaction was reported, though the deviation from forecasts may influence short-term sentiment.