China Dials Back Support for Yuan as Currency Steadies

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The yuan has erased much of the year’s losses against the dollar in recent weeks as the latter retreated amid expectations of Federal Reserve rate cuts next month. Photo: Bloomberg

(Bloomberg) — China’s central bank set its daily reference rate for the yuan broadly in line with expectations for the first time in more than a year, a sign it’s loosening its tight grip for the managed currency.

The People’s Bank of China (PBOC) set the so-called fixing at 7.1307 per dollar on Wednesday, just seven pips away from the estimates in a Bloomberg survey of analysts and traders. The gap was the smallest since June 2023.