Key points

  • According to Business Recorder, China's yuan traded steadily at 6.671 per dollar, gaining 14 pips from the previous session's close.
  • A sharp drop in global oil prices and stronger US technology stocks provided crucial support for the Chinese currency, as reported by Business Recorder.
  • Business Recorder noted that the People's Bank of China set the daily midpoint rate at 6.7167 per dollar.

As global markets braced for critical economic indicators from Washington, the Chinese yuan stood its ground on Tuesday, buoyed by an overnight softening of the greenback and favorable risk sentiment, according to Business Recorder.

Key Details

Business Recorder reported that the spot yuan opened at 6.6711 and hovered around 6.671 by 0300 GMT. Gains were tempered by a recent wave of higher dollar deposit rates introduced by several domestic banks, which bankers indicate are successfully attracting cash reserves. The currency has rallied by approximately 10% against the dollar since early 2025, prompting regulatory interventions. Last week, the People's Bank of China announced measures requiring banks to increase their foreign currency reserve holdings. Analysts at OCBC observed, as cited by Business Recorder, that these policy maneuvers aim to moderate the pace rather than reverse the direction of the currency's appreciation. Furthermore, the central bank set its midpoint rate at 6.7167 per dollar, which came in weaker than Reuters estimates.

Context and Impact

Broader movements in the US dollar continue to exert significant influence over currency pairs, while daily fixing guidance remains a critical tool for monetary authorities, Business Recorder stated.

Summary and What Next

Market participants await upcoming US inflation data for clearer signals regarding future monetary policy outlooks. Daily central bank guidance will remain a primary factor influencing currency trajectories going forward, according to Business Recorder reports.