A clerk arranges bundles of 100 Chinese yuan banknotes at a bank in Hefei, Anhui province. — Reuters pic
SHANGHAI, Aug 28 ― China's central bank lowered its official yuan midpoint to a new 11-1/2-year low today, but at a firmer level than traders had expected.
The People's Bank of China (PBOC) set the midpoint rate at 7.0835 per dollar prior to market open, 25 pips weaker than the previous fix of 7.0810 and the weakest since March 18, 2008.
Traders said today's official guidance rate again came in much stronger than their forecasts, and markets took it as an official attempt to slow the pace of yuan depreciation.
Today's official guidance rate was 192 pips or 0.27 per cent stronger than Reuters' estimate of 7.1027 per dollar. ― Reuters