⁍ The People’s Bank of China set the midpoint rate at 6.7296 per dollar.
⁍ The spot market opened at 6.7580 per dollar and was changing hands at 6.7565.
⁍ The offshore yuan weakened to a low of 6.7650 in early Asian trade.
– The People’s Bank of China set its official midpoint rate for the yuan today at 6.7296 to the US dollar, below the previous fix of 6.7126 and analysts’ estimates of 6.7126. The yuan opened at 6.7580 and was changing hands at 6.7565 as of this writing, 105 pips weaker than the previous close. The offshore yuan weakened to a low of 6.7650 in early Asian trade. Over the weekend, the PBOC announced it would lower to zero from 20% the reserve requirement ratio for financial institutions when conducting some foreign exchange forwards trading, with effect from Monday. The move, which effectively lowers the cost of shorting the Chinese currency, came after a recent sharp rally in the yuan.
Source: https://www.reuters.com/article/china-yuan-midday/yuan-slips-after-pboc-sets-weaker-midpoint-idUSL4N2H40LQ