China Sets Yuan Midpoint Stronger Than Expected
Stronger Yuan Midpoint
The People’s Bank of China set the onshore yuan midpoint at 7.2006 against the U.S. dollar on Friday — more than 1,000 basis points stronger than Reuters’ estimate of 7.3065 per dollar.
This is the second straight day that the fixing rate was above 1,000 points stronger than the Reuters forecasts, and caps off four straight days that the midpoint rate has been almost 900 basis points stronger than the forecasts.
A day earlier, the Chinese central bank fixed the midpoint at of 7.2046, versus Reuters’ estimate of 7.3047.
The yuan midpoint is a reference point for trading, and caps the range between +2% and -2%. That means the yuan, also referred to locally as the renminbi (RMB), is allowed to trade 2% above or below the fixing rate each trading day.
