China’s central bank set the daily yuan midpoint above market expectations, signaling potential depreciation pressure on the currency.
The People’s Bank of China set the USD/CNY reference rate at 6.7933, compared with a market estimate of 6.7737. The fix allows the yuan to trade within a 2% band around the midpoint, a mechanism used to manage volatility.
The prior close stood at 6.7665, indicating a slight weakening trend. Analysts had anticipated a stronger fix, reflecting recent dollar strength and market sentiment toward the yuan.
The move may signal cautious policy amid external economic pressures, though no immediate market reaction was reported.