JPMorgan has revised its Q4 target for the US dollar to Chinese yuan (USD/CNY) exchange rate lower to 7.15 from 7.30, citing moderating tariff risks and a trend toward de-dollarization. The bank expects a gradual decline to 7.10 by the second quarter of 2026. The People's Bank of China (PBOC) has recently set the USD/CNY central parity rate higher than market estimates, raising it to 7.1803 on June 12, 2025, which was 12 pips higher than expected but still 100 pips weaker than market expectations. On June 13, 2025, the PBOC again raised the central parity rate to 7.1772, 31 pips above the previous fix and 87 pips weaker than market expectations, marking the strongest yuan level since March 28. The PBOC also injected 202.5 billion yuan through seven-day reverse repos at an unchanged rate of 1.40%, with a net injection of 67.5 billion yuan in open market operations. Estimates for the yuan fixing rate ranged from 7.1685 to 7.1852, but the PBOC's actual fixes have consistently been slightly weaker than these estimates. These actions reflect ongoing adjustments in China's currency policy amid evolving trade and economic dynamics between China and the United States.