The People's Bank of China (PBOC) has set the yuan midpoint at 7.1395 against the US dollar, marking an appreciation from the prior close and representing the strongest level since November 8, 2024. This adjustment reflects an increase of 101 pips, which is 380 pips stronger than market expectations amid ongoing trade tensions. On August 7, 2025, the PBOC again raised the yuan central parity rate to 7.1345 per US dollar, the strongest level since November 6, 2024, with an increase of 64 pips, exceeding market expectations by 360 pips. These moves indicate a strengthening of the yuan in the face of external economic pressures.