Offshore yuan has weakened after the PBOC set the CNY stronger again

<p>The People's Bank of China set the reference rate stronger than expected for the onshore yuan again today:</p><ul><li><a href="https://www.forexlive.com/centralbank/pboc-sets-usd-cny-central-rate-at-71968-vs-estimate-at-72180-20230705/" target="_blank" rel="follow" data-article-link="true">PBOC sets USD/ CNY central rate at 7.1968 (vs. estimate at 7.2180)</a></li></ul><p>Offshore yuan, CNH, initially followed a little higher (see the linked post above) but has since truend right around and dropped rapidly:</p><p>The People's Bank of China's moves to steady the yuan have been effective, but its not stopping traders from selling yuan rallies.</p><p>Part of the reason is the PBOC on an easing path while the Federal Reserve is still expected to raise rates. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.