China’s central bank sets the daily yuan midpoint above market expectations, signaling potential policy shifts amid currency volatility.
The People’s Bank of China set the USD/CNY reference rate at 6.7889, compared with a market estimate of 6.7480. The fix allows the yuan to trade within a 2% band around the midpoint, a mechanism used to manage daily fluctuations.
The stronger-than-expected rate follows recent efforts to stabilize the yuan amid capital flow pressures and external economic uncertainties. The prior day’s fix was not disclosed in the release, but the deviation from estimates suggests a deliberate policy stance.
Markets may interpret the move as a signal of tighter control over currency depreciation, though immediate reactions in onshore and offshore yuan trading remain limited.