China sets yuan midpoint at widest weak-side gap to estimates in five months

SHANGHAI: China set its daily official yuan midpoint lower than expected on Friday, its largest weak-side deviation from market estimates in five months despite broad US dollar weakness.

Prior to market opening, the People’s Bank of China (PBOC) set the midpoint rate at 6.7894 per dollar, 581 pips weaker than a Reuters estimate of 6.7313, the largest weaker-side deviation since February 27.

Yuan steady as PBOC sets fix at 3-1/2-year high; Fed decision eyed

The spot yuan is allowed to trade 2% either side of the fixed midpoint each day.

The central bank has been setting weaker-than-expected yuan midpoints since November 2025, which analysts and traders interpret as an effort to keep the currency market stable and prevent excess yuan gains.