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 6.8166, weaker than the 6.8015 estimate. The move suggests a slight easing bias amid recent yuan volatility and external pressures.
The previous close stood at 6.7990, with the PBOC allowing a +/- 2% trading band around the midpoint. The central bank also injected 231.5bn yuan via 7-day reverse repos at an unchanged 1.4% rate, maintaining liquidity support.
Markets may interpret the weaker-than-expected fix as a signal of tolerance for gradual yuan depreciation, though no immediate reaction was reported.