SHANGHAI: China’s yuan inched to a near 32-month high against the US dollar on Friday, after the central bank lifted its official guidance rate to the stronger side of the psychologically important 7-per-dollar mark for the first time since 2023.
Market participants have been closely monitoring the guidance, viewing adjustment as potentially signalling a shift in the authorities’ stance on foreign exchange.
Traders have been watching to see whether the central bank would allow the official midpoint to strengthen beyond 7 following spot rate movement late last year, in what they said could represent official tolerance for yuan appreciation.
Prior to market open, the People’s Bank of China (PBOC) set the midpoint at 6.9929 a dollar, the strongest since May 17, 2023, and 90 pips firmer than the previous setting.
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