People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.
CNH is the offshore yuan. USD /CNH has no restrictions on its trading range.
A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.
The previous close was 6.9630
The USD continued to gain after the inflation data on Friday. The People's Bank of China getting on board by weakening the onshore yuan. Big time. 600+ points lower from Friday's mid rate. This is the biggest one-day weakness in the onshore yuan setting since July last year.
PBoC injects 336bn yuan of 7-day reverse repos at an unchanged rate of 2.0%
270bn yuan of RRs mature today
thus a net injection of 66bn yuan on the day in open market operations