The People’s Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.
- USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.
- 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 7.1724.
Today’s 7.1087 is the weakest for the CNY since December 14.
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PBOC injects 27bn via 7-day RR, sets rate at an unchanged 1.8%
- 15bn yuan of RRs mature today
- thus a net 12bn yuan injection on the day in OMOs
This article was written by Eamonn Sheridan at www.forexlive.com. Source