The People’s Bank of China set the daily reference rate for the on-shore yuan at 7.1534 per U.S. dollar on 1 July, strengthening the fix by 52 pips from the previous session to the firmest level since 8 November 2024. The midpoint, however, remained about 25 pips weaker than the median estimate in a market survey, underscoring the central bank’s continued preference for a gradual pace of currency adjustment. While the fix curbed yuan depreciation against the dollar, the currency’s broader performance deteriorated: the trade-weighted CFETS yuan basket index slipped to 95.15, the weakest reading since 4 January 2021. The euro also closed Monday at its strongest level against the yuan since 2014, highlighting the divergence between bilateral and multilateral measures of the Chinese currency.