PBOC Sets Stronger-Than-Expected Fix as Yuan Hits Two-Year Low

The yuan is under pressure to fall as a hawkish Fed puts the U.S. central bank’s policy increasingly at odds with that of China, which is keeping an accommodative stance

(Bloomberg) — China set its daily reference rate for the yuan at a stronger-than-expected level for a fourth day, after the offshore currency tanked to a two-year low on the back of a hawkish Federal Reserve.

The People’s Bank of China set its fixing at 6.8698 per dollar, 96 pips stronger than the average forecast in a Bloomberg survey with analysts and traders. The reference rate, which limits the onshore yuan’s moves by 2% on either side, was set stronger after the offshore unit slid past 6.9 for the first time since 2020.