The People’s Bank of China has set Thursday’s USD/CNY reference rate at 6.7895, representing a slight weakening of the yuan from Wednesday’s fix of 6.7889. The adjustment marks a minimal six-pip depreciation in the official midpoint around which the yuan is allowed to trade within a two percent band during mainland trading hours.
The PBOC’s fix came in significantly weaker than the Reuters estimate of 6.7462, a gap of over 430 pips that signals continued central bank tolerance for yuan softness. This divergence between market expectations and official guidance suggests Beijing remains comfortable allowing gradual currency depreciation despite recent volatility in global forex markets. Traders holding yuan positions or operating in China-exposed sectors should note the widening spread between market projections and official policy settings, which could indicate shifting monetary policy priorities or external pressure accommodation.
FXnCO Insight
The substantial gap between the PBOC fix and Reuters estimate points to potential continued yuan weakness ahead, warranting caution on long CNY positions and closer monitoring of official guidance versus market pricing.
Source: FXStreet