SHANGHAI: China’s yuan held steady against the dollar on Wednesday, as a firmer-than-expected official midpoint offset the pressure from the US currency’s climb to a multi-week high on reduced bets for imminent Federal Reserve rate cuts.
The dollar rose against major currencies, hovering near the highest level since June 20, after US inflation suggested tariffs are pushing prices up, dampening expectations for Fed policy easing and driving Treasury yields higher.
Prior to the market opening, the People’s Bank of China set the midpoint rate at 7.1526 per dollar, 388 pips firmer than a Reuters’ estimate, the largest deviation since May 9. The spot yuan is allowed to trade 2% either side of the fixed midpoint each day.
The spot yuan opened at 7.1800 per dollar and was last trading at 7.1815 as of 0226 GMT, 5 pips lower than the previous late session close and 0.4% weaker than the midpoint.
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