China’s central bank sets the daily yuan reference rate below market expectations, signaling potential depreciation pressure.
The People’s Bank of China set the USD/CNY reference rate at 6.8109, weaker than the 6.7640 estimate. The fix marks the lowest yuan level since February 10, 2023, allowing a 2% trading band around the rate.
Analysts had anticipated a stronger fix, reflecting recent dollar strength and market sentiment. The yuan’s decline follows broader emerging-market currency trends amid global monetary policy shifts.
Traders are monitoring the move for potential intervention signals or policy adjustments from Chinese authorities.