The USD/CNH currency pair showed softness following a lower USD/CNY fixing, which marked the lowest rate since May 2023. This development reflects the People's Bank of China's (PBOC) intent to signal a gradual appreciation of the Renminbi (RMB). Currently, USD/CNH is trading at 6.9668, indicating a shift in market sentiment towards the Chinese currency.
Analysts from OCBC, Sim Moh Siong and Christopher Wong, highlight that the PBOC’s actions are designed to bolster the RMB's strength in the foreign exchange market. As traders respond to this guidance, the implications for the broader FX landscape could lead to increased volatility in other currency pairs, particularly if the USD continues to face downward pressure.
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Data Source: FX Killer Analysis Team Updated: 2026-01-16 10:23
Disclaimer: This article is for reference only and does not constitute investment advice. Forex trading involves risks; please make decisions carefully.