China sets yuan at much stronger fixing than markets expected

China's central bank set the yuan fixing at the widest gap against Reuters' estimate in nearly five months, as authorities step up efforts to prevent sharp declines in the currency. Prior to the market's opening, the People's Bank of China (PBOC) set the midpoint rate at 7.0948 per U.S. dollar, around which the yuan is allowed to trade in a 2% band. The fixing came in 1,311 pips stronger than a Reuters' estimate of 7.2259, the widest gap since November 2023.