China lifts yuan midpoint, but trade weighted value falls to lowest since 2021
China lifted its official yuan midpoint to its strongest since November on Tuesday.
SHANGHAI: China lifted its official yuan midpoint to its strongest since November on Tuesday, but pressured its value versus its major trading partners to the lowest level in more than four years.
Prior to market opening, the People's Bank of China set the midpoint rate at 7.1534 per dollar, its strongest since November 8, 2024, and 25 pips weaker than a Reuters estimate of 7.1509. The spot yuan is allowed to trade 2% either side of the fixed midpoint each day.
Based on Tuesday's official midpoint setting, the yuan's trade-weighted value against its basket of currencies, as measured by CFETS yuan basket index, fell to 95.15, the lowest level since January 4, 2021.
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