The People’s Bank of China (PBOC) set the daily midpoint for USD/CNY at 7.2066 on Thursday, marking a modest strengthening from the previous fix of 7.2098. The adjustment comes as authorities continue to guide the currency within a narrow range amid ongoing global uncertainties and domestic economic balancing.
The slightly firmer yuan fix suggests that policymakers are keen to prevent excessive depreciation while still allowing some flexibility in response to external pressures, including a stronger U.S. dollar and renewed geopolitical risks. Analysts view the move as a signal that Beijing remains focused on currency stability, especially as capital outflow concerns linger.
China’s central bank sets the reference rate each morning, allowing the yuan to trade within a 2% band around the midpoint. Today’s fix was stronger than market expectations, indicating possible efforts to temper bearish sentiment toward the currency as trade tensions with the U.S. show signs of reemerging.
Meanwhile, market participants are closely monitoring broader developments in Chinese monetary policy, particularly in light of the PBOC’s recent liquidity injections and indications that policy easing may remain gradual. Investors are also watching for how the yuan reacts to shifting risk appetite globally, as well as domestic growth signals.
For now, the yuan continues to hover near the lower end of its trading band, reflecting a delicate balancing act by Chinese authorities as they navigate both internal economic pressures and external headwinds.
