China’s central bank sets the yuan reference rate above market expectations, signaling potential currency stabilization efforts.
The People’s Bank of China set the USD/CNY mid-point at 6.7808, stronger than the Reuters estimate of 6.7196. This marks the yuan’s highest onshore level since February 8, 2023, reflecting recent policy moves to support the currency.
The PBOC allows the yuan to trade within a 2% band around the daily fix. The deviation from expectations suggests a shift in the central bank’s approach amid broader economic and geopolitical pressures.
Markets are monitoring the move for signs of further intervention or policy adjustments, though immediate reactions in offshore trading remain muted.