The People’s Bank of China fixed the yuan’s daily reference rate at 6.9096 per dollar on Tuesday, the weakest level in more than two years. The reference rate, however, still came at a higher-than-expected level for a 10th straight day, said Bloomberg.
“A fixing above 6.90 level is a signal of PBOC not defending any specific levels for now but the fix is still notably stronger-than-expected, signaling its intention to slow the pace of depreciation,” said Peiqian Liu, an economist at NatWest Markets.
The level 6.9 is important for the fixing, since it’s the last significant hurdle before the yuan crosses the psychological milestone of 7, which Beijing guarded strongly during its trade war with the U.S., according to Bloomberg.
