China’s central bank sets the daily yuan fix stronger than expected, signaling potential FX intervention amid liquidity adjustments.
The People’s Bank of China set the USD/CNY reference rate at 6.8209, above the 6.8048 estimate from traders. The yuan is permitted to trade within a 2% band around this rate, influencing onshore and offshore markets.
The fix comes after recent volatility in the yuan, with prior sessions showing pressure on the currency. Analysts had anticipated a weaker fix, reflecting broader USD strength and domestic economic concerns.
The PBOC also announced overnight reverse repo operations for June 29 and 30 to address short-term liquidity needs in the banking system, adding to policy support measures.