Yuan midpoint hits weakest since June 8, China central bank sets fix

The Chinese yuan’s midpoint rate hit its weakest level since June 8, 2026, as the People’s Bank of China (PBoC) set the daily reference rate at 6.8171 per U.S. dollar. This move reflects the central bank’s measured approach to managing the currency amid ongoing U.S. dollar strength and evolving economic conditions. The PBoC has maintained its one-year and five-year loan prime rates (LPR) at 3% and 3.5%, respectively, for the thirteenth consecutive month, underscoring its cautious stance on monetary policy.

The offshore yuan traded near 6.78 per dollar on Tuesday, hovering close to a two-week low as the U.S. dollar gained traction on expectations of further Federal Reserve rate hikes. Meanwhile, seasonal foreign-exchange demand, particularly from Hong Kong-listed Chinese firms preparing for increased dividend payouts in June, has added downward pressure on the yuan.

Looking ahead, analysts project the yuan to trade at 6.78 by the end of the quarter and 6.73 in 12 months. The PBoC’s recent interventions, including setting the midpoint below market expectations, signal a strategic tolerance for a weaker yuan to support export competitiveness and economic stability.