PBOC sets daily reference rate below Reuters poll estimate, signaling modest depreciation pressure on the yuan.
The People’s Bank of China set the USD/CNY reference rate at 6.7873 for Monday’s session, slightly weaker than Friday’s fix of 6.7878. The rate came in below the 6.7382 level forecast by Reuters, reflecting a softer yuan stance.
The central bank’s daily fixing serves as a midpoint for the yuan’s trading band, allowing fluctuations of 2% in either direction. Recent sessions have seen the currency under mild depreciation pressure amid broader USD strength and domestic economic concerns.
Markets monitor the fix closely for signals on China’s exchange rate policy, particularly as the PBOC balances growth support with currency stability. The yuan’s performance remains a key focus for investors navigating China’s monetary policy outlook.