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The PBOC set the onshore yuan reference rate at 7.1376 per dollar, well stronger than the 7.2437 estimate and the prior close of 7.2460. The fix was the weakest for the yuan since November 21 of the prior year.
The central bank also injected 1 billion yuan through a 7-day reverse repo at 1.7%.
A fixing well below estimates signals official concern about yuan weakness and tightens the signal for Chinese capital flows and import purchasing power. The move is a currency signal with limited direct effect on feed prices.
investinglive.comAug 2, 2024After 991 past macro events, Chinese Yuan (CNY per USD) moved a median -0.0% over 5 sessions (49% higher; middle half -0.3% to +0.3%), and -0.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
The PBOC set the USD/CNY fix at 7.1376, far stronger than the 7.2437 estimate and the prior close of 7.2460, which signals official resistance to yuan weakness and directly pushed CNY stronger (USD/CNY lower) on the day; the summary's 'weakest since November' wording is inconsistent with the figures, so some caution applies.
The Aug 2 PBOC fix of 7.1376, far stronger than the 7.2437 estimate, signaled official support for yuan strength and anchored the drop in USD/CNY.
