China Gives Most Forceful Signal Since 2022 to Slow Yuan Gains

The People’s Bank of China set the so-called fixing at 7.0733 per dollar, 164 pips lower than a survey of traders and analysts. The gap between the fixing, which limits the onshore yuan’s moves by 2% on either side, and a forecast on the weak side was the largest since February 2022. The PBOC is trying to engineer a calibrated ascent in the yuan that reflects stronger sentiment toward Chinese assets and a weaker dollar, but also keeps its export engine humming.