PBOC Sets Yuan’s Official Midpoint Rate at Higher Than Expected Level

For the third consecutive day, the PBOC has set the official midpoint rate for the yuan at a higher than expected level, as it attempts to..

USD/CNH

For the third consecutive day, the PBOC has set the official midpoint rate for the yuan at a higher than expected level, as it attempts to stem further weakness in its currency. At the time of writing, USD/CNH is trading at around 7.173.

As markets opened on Thursday, China’s central bank set the yuan’s midpoint rate at 7.0858 against the US dollar, 23 pips lower than the level set yesterday. However, economists were expecting the official guidance rate to be set at 7.1237, 379 pips higher.

After a short period of strengthening, the Chinese yuan weakened on Wednesday, marking 10 consecutive days of bearishness. China’s currency has been weakening amid rising trade tensions between the US and China, although the US has previously accused China of intentionally manipulating its currency and keeping it weak to offset impact of the trade war and maintain its competitive edge in international trade.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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