USD/CNY: PBOC sets stronger yuan fix at 7.1359 vs 7.1854 close

The People's Bank of China (PBOC) set the USD/CNY reference rate at 7.1359 for today's trading session, significantly stronger than the previous close of 7.1854. This represents a notable 495-pip strengthening of the yuan against the US dollar within China's managed floating exchange rate system. The PBOC maintains a daily trading band of +/-2% around this midpoint, allowing controlled currency fluctuations while preventing excessive volatility. The stronger-than-expected fixing suggests Chinese authorities may be signaling support for the yuan amid ongoing economic concerns. This development could influence broader Asian currency markets and impact dollar strength across the region. Traders should monitor whether spot USD/CNY gravitates toward the new midpoint during the session, as sustained deviation could indicate market resistance to the PBOC's guidance. The move may reflect China's efforts to maintain currency stability while balancing economic growth objectives.