Yuan’s Rally Draws Subtle Signal From PBOC Over Pace of Gains

PBOC warned against one-way bets on yuan in Thursday statement
Chinese currency is best performer in Asia, up 2.5% this year

The People's Bank of China (PBOC) building in Beijing.
Photographer: Qilai Shen/Bloomberg

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By Tian Chen and Livia Yap

May 28, 2021 at 1:22 AM UTC

Updated on

May 28, 2021 at 8:47 AM UTC

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China is signaling that the yuan’s recent appreciation is too rapid, with steps that are likely to slow -- but not reverse -- its gains after the currency soared to multi-year highs against that of trading partners.

The People’s Bank of China set the daily dollar-yuan fixing at 6.3858, compared with the average estimate of 6.3837 in a Bloomberg survey of traders and analysts. The reference rate is weakest relative to the average forecast since May 11, although estimates on Friday were in a wide range from 6.3778 to 6.3949.