The People's Bank of China (PBOC) set the USD/CNY reference rate at 7.1498 on July 18, 2025, marking a 37-pip cut from the previous fix of 7.1461 and significantly stronger than market expectations of 7.1736. This move reflects the PBOC's ongoing efforts to support the yuan and curb its depreciation. The yuan opened slightly stronger at 7.1790 per dollar compared to the previous close of 7.1809. Meanwhile, the Indian rupee also showed modest strength, opening at 86.01 against the US dollar, up from the previous close of 86.07. The pause in the dollar rally has provided some relief to the rupee after it breached the 86 mark earlier.