The onshore yuan touched 6.6682 per dollar, its firmest since June 2022, while the People's Bank of China held loan prime rates at 3.00% and 3.50% for a 17th month and set its fixing 471 pips weaker than estimates to slow the rally.
Xi Jinping opened the CPC's fifth plenum in Beijing, a closed-door session through Thursday that Reuters said markets will watch for policy clues alongside this week's Fed, BoJ and ECB meetings. Source
Onshore spot touched 6.6682 per dollar on Monday, the firmest since June 2022, and was on course for an eighth straight daily gain, the longest run since May. The People's Bank of China (PBOC) set the USD/CNY midpoint at 6.7162, the strongest fixing since 2 February 2023. It was still 471 pips weaker than Reuters' model estimate of 6.6691, the widest weak-side gap since 23 September. Year to date, the onshore yuan is up 4.9% and the offshore yuan is up 4.6%.
