The People’s Bank of China set the yuan’s daily reference rate at 7.1789 per US dollar on 16 June, a 17-pip reduction from the previous fixing and 65 pips stronger than the level forecast by traders. The move follows consecutive weaker-than-expected fixings earlier in the week—7.1803 on 12 June and 7.1772 on 13 June—signalling a shift toward a firmer stance after allowing modest depreciation pressure to build. Despite the stronger fixing, the China Foreign Exchange Trade System’s Renminbi Index, which tracks the currency against a basket of peers, slipped 0.09 point over the week, indicating continued softness in the broader market. The latest mid-point suggests policymakers are seeking to stabilize the currency while balancing concerns over capital outflows and economic growth.