China’s central bank sets the daily yuan reference rate at 6.7873, above market forecasts of 6.7382, signaling potential currency support.
The People’s Bank of China set the USD/CNY reference rate at 6.7873, stronger than the estimated 6.7382. The move comes ahead of delayed July economic data, which markets expect to shed light on demand trends and monetary policy direction.
Analysts had anticipated a weaker fix, reflecting recent yuan depreciation pressures. The PBOC’s stance may aim to stabilize the currency amid broader economic uncertainty, though traders remain cautious about further intervention.
The yuan’s slight firming follows a broader trend of Asian currencies gaining as Fed rate hike bets ease. However, China’s delayed data release adds to market unease over growth momentum.