China sets yuan mid-point at fresh 11-yr low, but much stronger than forecasts
SHANGHAI, Aug 23 (Reuters) - China's central bank lowered
its official yuan midpoint to a fresh 11-year low on Friday, but
it was nowhere as weak as traders had expected.
The People's Bank of China (PBOC) set the midpoint rate
at 7.0572 per dollar prior to market open, 82 pips
weaker than the previous fix of 7.0490 and the weakest since
March 21, 2008.
However, traders said Friday's official guidance rate came
in much stronger than their forecasts, and they took it as an
official attempt to slower the pace of yuan depreciation. The
official fixing was 102 pips or 0.14 percent firmer than
Reuters' estimate of 7.0674 per dollar.
Onshore spot yuan fell to fresh 11-year lows on
Thursday amid worries about the deepening Sino-U.S. trade war,
despite support from major state-owned banks in both the spot
and forwards markets.
(Reporting by Winni Zhou and John Ruwitch; Editing by Simon
© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.