China Gives Most Forceful Signal Since 2022 to Slow Yuan Gains

China set its daily reference rate for the yuan at a level that was significantly weaker than estimated by traders and analysts, suggesting the central bank is aiming to cool gains in the managed currency.

The People’s Bank of China set the so-called fixing at 7.0733 per dollar, 164 pips from the average estimate in a Bloomberg survey. The gap between the fixing, which limits the onshore yuan’s moves by 2% on either side, and the forecast was the widest to the weak side since February 2022.