People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.
CNH is the offshore yuan. USD /CNH has no restrictions on its trading range.
A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.
The previous close was 6.9630
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The USD continued to gain after the inflation data on Friday. The People's Bank of China getting on board by weakening the onshore yuan. Big time. 600+ points lower from Friday's mid rate. This is the biggest one-day weakness in the onshore yuan setting since July last year.
PBoC injects 336bn yuan of 7-day reverse repos at an unchanged rate of 2.0%
270bn yuan of RRs mature today
thus a net injection of 66bn yuan on the day in open market operations
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