China’s central bank sets the daily yuan reference rate above market expectations, signaling potential depreciation pressure.
The People’s Bank of China set the USD/CNY reference rate at 6.8431, compared with an estimate of 6.7946. The move allows the yuan to trade within a 2% band around the fix, a mechanism designed to manage volatility.
The weaker-than-expected fix follows recent pressure on the yuan amid broader USD strength and diverging monetary policy expectations. Analysts had anticipated a stronger yuan fix, reflecting recent stability in offshore markets.
The yuan’s performance remains closely watched as investors assess China’s economic outlook and policy responses to external pressures.