China’s central bank sets the yuan reference rate slightly below Reuters estimates, signaling modest depreciation pressure.
The People’s Bank of China set the USD/CNY reference rate at 6.7934 for Friday’s session, up from 6.7909 the previous day. The fix came in weaker than the 6.7734 estimate from Reuters, reflecting a slight depreciation bias for the yuan.
The PBOC’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 face downward pressure amid broader USD strength and domestic economic concerns.
Markets monitor the fix closely as a signal of Beijing’s policy stance, though the PBOC retains tools like foreign exchange interventions to stabilize the yuan if needed.