China’s yuan remains stable after the PBOC sets its firmest reference rate in nearly three years

Yuan Holds Steady as Central Bank Sets Strongest Reference Rate in Over Two Years

The Chinese yuan remained largely stable against the US dollar on Friday, following the central bank's decision to set its daily reference rate at the highest level since May 2023. Meanwhile, the US dollar gained strength as investors looked ahead to the White House's announcement of its nominee for the Federal Reserve chair.

Before trading began, the People's Bank of China established the midpoint at 6.9678 per dollar—marking its firmest level in 32 months and coming in 219 pips below what Reuters had projected. The yuan is permitted to fluctuate within a 2% range above or below this midpoint each trading day.

At market open, the spot yuan started at 6.9530 per dollar and was last seen trading at 6.9499 as of 02:57 GMT, representing a slight strengthening of 7 pips compared to the previous session's close.