China’s central bank sets the daily yuan reference rate above market expectations, signaling potential currency adjustment.
The People’s Bank of China set the USD/CNY reference rate at 6.8373, compared with a Reuters estimate of 6.7992. The fix allows the yuan to trade within a 2% band around the rate, a mechanism used to manage volatility.
The weaker-than-expected fix follows recent pressure on the yuan amid broader USD strength and market speculation over China’s monetary policy stance. The last comparable fix was lower, reflecting a shift in the central bank’s guidance.
Markets are monitoring the move for signs of further yuan depreciation or intervention by Chinese authorities.