PBOC sets USD/CNY reference rate at 6.7787 vs. estimate of 6.7093
Author: ForexLive·
Key Takeaways
- •The PBOC set the USD/CNY reference rate at 6.7787, stronger than the Reuters estimate of 6.7093.
- •This fixing is the strongest for the yuan since 8 February 2023.
- •The onshore yuan is allowed to trade within a 2% band around the daily reference rate.
- •Fixings firmer than market estimates are watched as signals of the central bank's tolerance for currency strength.
The People's Bank of China (PBOC) has set the USD/CNY reference rate for today's trading session at 6.7787, stronger than the Reuters estimate of 6.7093. This marks the strongest fixing for the yuan since 8 February 2023.
The daily reference rate, also known as the midpoint fixing, serves as the anchor for onshore yuan trading: the PBOC allows the yuan to fluctuate within a +/- 2% range around this reference rate during onshore trading. A fixing set firmer than market estimates is typically watched closely by traders as an indication of the central bank's tolerance for currency strength or weakness at a given time.
More details available here.
Source: investingLive
