China's official yuan reference rate strengthened slightly to 6.7192 per U.S. dollar Wednesday, although the daily fixing was far weaker for the currency than a Reuters estimate.
The China Foreign Exchange Trade System (CFETS) published the Oct. 21 rate for the interbank market under authorization from the People's Bank of China (PBOC). The previous day's rate was 6.7200 per dollar. That made the latest fixing eight pips, or 0.0008 yuan, stronger for the yuan.
Reuters had estimated a rate of 6.6779 per dollar. The official fixing was 413 pips, or 0.0413 yuan, above that estimate. Because the rate is quoted in yuan per dollar, the higher figure means the yuan was fixed weaker than Reuters had estimated, despite its gain from the previous day.
CFETS calculates the daily rate from a weighted average of quotes submitted by market makers before trading opens, after removing the highest and lowest submissions. The quotes take account of the previous session's closing rate, foreign-exchange supply and demand, and movements in major currencies.
