PBOC sets USD/ CNY central rate at 6.8649 (vs. yesterday at 6.8365)
Tuesday's was the weakest onshore yuan reference rate setting since early January this year.
- Weaker CNY again today from the Bank.
- Lowest for the CNY since late December 2019.
PBOC skips OMOs today. 10bn yuan of RRs mature today.
More on the yuan:
I noted in the wrap yesterday that shorting the offshore was becoming expensive, with HIBOR rates ratcheting quickly higher:
- the PBOC has let the yuan slide they will not want a weak currency to be an entrenched expectation, fearing faster capital outflow.
Capital economics with more on this: