China's central bank, the People's Bank of China (PBOC), has been allowing the yuan to weaken gradually, with the currency reaching its weakest fixing since November 2023. The onshore yuan found support at 7.26 per dollar as state-owned banks intervened by selling USD to prevent further weakening. The offshore yuan hit a low of 7.2908 per dollar. The PBOC set the central parity rate at 7.1196 per USD, which is about 1,500 pips stronger than market expectations. This move comes amid broad strength in the US dollar and ongoing US sanctions, which have pressured the yuan. The PBOC's actions signal a shift towards a crawling peg regime, allowing a slow devaluation of the yuan while managing its decline through interventions. Additionally, the USD/CNH hit 2024 highs, and the onshore yuan closed at its weakest since November 14.
China’s support for the yuan Friday signaled its desire to manage its decline, as a strong dollar kept the currency close to a policy no-go area. The PBOC set its daily reference rate at 7.1196 per dollar https://t.co/4OlBxWUA7A
China boosted its support for the yuan in a bid to manage its decline as broad strength in the US dollar kept the currency close to a policy no-go area https://t.co/Z9JTaijCJM via @markets
Onshore #Yuan closed at 7.26 per dollar, the weakest since Nov 14. Offshore yuan hit 7.2908 per dollar at one point. https://t.co/haGgRmRP6L https://t.co/9hs55Fyz3O
Yen Hangs Firmly In Crosshairs Of Intervention Despite Watchlist Warning - BBG https://t.co/cAYpPX71Jm
🇨🇳 #China | #PBOC Manages #Yuan’s Decline With Strong Support Via Fixing – Bloomberg https://t.co/CS4vusFq22 https://t.co/jPOn5oU785
Chinese Banks Sell USD to Support Yuan on Friday After Fixing: BBG
Looks like PBOC is stepping up to the plate to deter CNY weakness today. Assisting other Asia FX names since the fix
China boosted its support for the yuan in a bid to manage its decline as broad strength in the dollar kept the currency close to a policy no-go area https://t.co/0a1NDCO8Lv
⚡PBOC only cuts the $CNY Central Parity Rate by 4 pips to 7.1196 per USD on Friday, after the weakening against the dollar overnight. The fixing rate is now about 1,500 pips stronger than market expectations, the most since April 11. #China $USDCNY $USDCNH https://t.co/CRhjhMBrln
USD/CNH surging towards 7.30 as the PBoC dial back yuan support - fixing coming soon https://t.co/8Kk8VQALQ9
China's yuan is tumbling amid US sanctions and as central banks boost dollar holdings https://t.co/tttzJdWH1T
PBOC USDCNY fixing at weakest nice November 2023 but still 1300+ pips weaker than Spot https://t.co/bYB6z8cq1d
It looks like China's currency regime is now a crawling peg, not a pure peg -- with a tiny but real crawl toward a weaker yuan. 1/ https://t.co/OHDg6Ac3o2
Chinese Yuan Sinks to Seven-Month Low Against US Dollar https://t.co/G0QLJeOE90
New year-to-date highs in USDCNH! It seems like China is going for the "slow-burn" devaluation, especially with activity once again being on the floor in China. More -> https://t.co/wzTlf8VkGG https://t.co/gt5fPGckZ4
$USDCNH Intervention keeps it below resistance https://t.co/h66Brku2aR
USD/CNH hits 2024 highs as PBOC loosens grip on yuan https://t.co/R8RRAE26aX https://t.co/FxRefUun9P
🇨🇳 #China Loosens Grip on #Yuan With Weakest Fixing Since November – Bloomberg https://t.co/Eq0vQ4uF94 https://t.co/e8EQrIYVEx
China 🇨🇳 weakens yuan fixing 33 ticks almost to 7.12...
🇨🇳The onshore yuan $CNY found support at 7.26 as large state-owned banks offered to sell USD at this level to prevent the yuan from weakening further. #China $USDCNY $USDCNH https://t.co/GfIs7I7oRt https://t.co/9kBqdqIamU
Yuan Fixing Signals PBOC Willing to Let Yuan Weaken Further: RBC https://t.co/hFNiHmmbe8
I haven't mentioned it for a while, but China is ever so slowly letting the CNY fix drift toward a weaker CNY. Close to 7.12 now ... 1/2 https://t.co/LwUMMXl8ye