China sets yuan midpoint at weakest in over 3 months

SHANGHAI: China's central bank on Wednesday dragged its official yuan midpoint to the weakest level in more than three months to reflect broad weakness in the spot market a day earlier following a sharp sell-off in Chinese stocks.

The People's Bank of China (PBOC) set the midpoint at 6.4929 yuan per US dollar prior to market open, 195 pips or 0.3%, weaker than the previous fix of 6.4734. It was the weakest since April 23.

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Wednesday's official guidance largely matched market forecasts, and it was 5 pips stronger than Reuters' estimate of 6.4934.