China's Yuan Midpoint Strengthens While Trade Value Dips
China set its yuan midpoint at its strongest since November, while its trade-weighted value against major currencies hit the lowest mark in over four years. The People's Bank of China fixed the midpoint at 7.1534 per dollar, weaker than a Reuters estimate, with a 2% trading band.
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- China
On Tuesday, China adjusted its official yuan midpoint to its strongest level since November; however, the currency's value against major trading partners fell sharply, hitting its lowest level in over four years.
The People's Bank of China set the midpoint rate at 7.1534 per dollar before market opening, slightly weaker than the 7.1509 estimated by Reuters. The yuan is permitted to fluctuate 2% around the fixed midpoint.
This official setting compelled the yuan's trade-weighted value, as tracked by the CFETS yuan basket index, to drop to 95.15, marking its weakest level since January 2021.
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