USD/CNY ignores PBOC hiking Yuan fix by most in 11 years

The Chinese currency weakened sharply against the American dollar on Friday, driving the USD/CNY rebound towards 6.9150 levels.

The Yuan failed to benefit from a stronger Yuan fix today, after the Chinese central bank strengthened the Yuan by the most since 2005 per dollar.  PBOC set the USD/CNY reference rate at 6.8668, sharply lower from Thursday’s 6.9307.

The ongoing upbeat momentum behind USD/CNY can be mainly attributed to broad based US dollar recovery after less hawkish FOMC minutes-backed sell-off seen a day before. Meanwhile, the USD index rises +0.27 % to 101.67 levels, having bounced-off three-week lows of 101.30.

At the time of writing, the USD/CNY pair advances +0.32% to 6.9104, easing slightly from session tops of 6.9133.