Forex
Yuan Stays Steady as Dollar Firms Up Amid US Inflation Watch
China's yuan maintained its stability on Friday despite a firmer US dollar, which had reached a one-week high. The People's Bank of China set a daily reference rate that was stronger than expected, helping to keep the onshore yuan calm.
The PBOC sets a 'fix' each morning, which is a midpoint for the onshore yuan to trade within a 2% band. On Friday, this midpoint was set at 6.7743 per dollar, its strongest since February 6th, 2023.
This strong fix may have helped to keep investors calm as they waited for US consumer price inflation (CPI) data, which can impact expectations of Federal Reserve interest rates.