China’s yuan rebounded from a one-month low after the central bank issued its strongest currency guidance in nearly three years, signaling efforts to stabilize markets.
The People’s Bank of China (PBOC) set the yuan’s midpoint rate at 6.9007 per dollar, slightly stronger than the previous fixing.
The move surprised markets, as the central bank had mostly issued weaker-than-expected guidance since late November amid slowing economic momentum.
China’s currency is allowed to trade within a 2% band on either side of the official midpoint set daily by the PBOC.
Following the stronger fixing, the onshore yuan rose 0.12% to 6.8865 per dollar, while the offshore yuan traded near 6.8882.
Analysts said the signal suggests policymakers intend to maintain a supportive policy stance, consistent with measures adopted since 2025.
The move also comes as Middle East tensions continue to unsettle global markets and increase volatility across major currencies.
Investors reacted cautiously, with geopolitical uncertainty still shaping sentiment and influencing global currency and financial markets.
