China’s central bank set the daily yuan reference rate weaker than expected, signaling potential support for the currency amid market fluctuations.
The People’s Bank of China set the USD/CNY reference rate at 6.7878, above the 6.7413 estimate. This marks the strongest fixing for the yuan since February 8, 2023, reflecting a tighter grip on currency stability.
The PBOC allows the yuan to trade within a 2% band around the daily fix. The move contrasts with recent market expectations, which had anticipated a softer rate, highlighting potential intervention or policy shifts.
No immediate market reaction was detailed, but the stronger-than-expected fix may influence trading sentiment in Asian currency markets.