PBOC sets the daily reference rate at 6.8401 CNY per USD, the strongest level in three years, lifting offshore yuan.
The offshore yuan strengthened to its highest level since February 2023, trading at 6.8401 CNY per USD. The move follows the People’s Bank of China setting its daily reference rate at the strongest level in three years, exceeding market estimates of 6.7888.
The yuan’s rally reflects recent efforts to stabilize the currency amid broader USD weakness and potential policy signaling. The last time the offshore yuan traded at this level was in early 2023, before a period of depreciation.
Separately, a Chinese very large crude carrier carrying nearly 2 million barrels of Iraqi crude has exited the Strait of Hormuz after a two-month delay, heading to Zhoushan with an expected June 1 arrival.