PBOC Sets Yuan Mid-Point at 7.1059, 7.1048 per USD, Surpassing Expectations

The People's Bank of China (PBOC) adjusted the yuan's central parity rate significantly over two consecutive days, setting it at 7.1059 and 7.1048 per USD, respectively. These adjustments were considerably stronger than market expectations, with the first day's setting being about 1,400 pips stronger and the second day's by over 1,300 pips. This move comes amid a backdrop where the yuan opened at 7.2435 per USD, closely matching its previous close. Notably, Reuters had estimated the midpoint to be 7.2363 per dollar, indicating a sharper adjustment than anticipated.