China PBOC likely to set yuan midpoint at 6.7877 per dollar: estimate

The People’s Bank of China (PBOC) is expected to set the yuan’s midpoint rate at 6.7877 per dollar on June 30, 2026, according to yuan’s midpoint rate. This projection reflects the central bank’s ongoing efforts to manage liquidity and stabilize the currency amid shifting global and domestic economic conditions. Earlier in the week, the PBOC introduced overnight reverse repo operations to inject liquidity into the financial system, injecting CNY 300 billion and an additional CNY 157.5 billion through seven-day reverse repos, while maintaining the benchmark rate at 1.4%.

The yuan has faced downward pressure due to a stronger U.S. dollar, with markets pricing in a 70% probability of a Federal Reserve rate hike in September. The PBOC has also been setting weaker-than-expected daily fixings, contributing to the yuan’s decline to a one-month low of 6.80 per dollar. Meanwhile, the Bank of China’s latest exchange rate data shows the yuan trading at 678.68 per dollar for the cash buying rate and 681.75 for the middle rate.

Investors will closely watch the PBOC’s midpoint setting and upcoming PMI data for further insight into China’s economic trajectory.