China’s central bank sets the daily yuan fix stronger than expected, signaling potential support amid market volatility.
The People’s Bank of China set the USD/CNY reference rate at 6.7934, above the estimated 6.7734. The yuan is permitted to trade within a 2% band around this rate, with the previous close at 6.7711.
The move follows a 450.5bn CNY injection via 7-day reverse repos at an unchanged 1.4% rate, maintaining liquidity conditions. Analysts had anticipated a weaker fix, making today’s decision a notable deviation.
Markets may interpret the stronger-than-expected fix as a signal of stability amid recent currency pressures.