Fixed the currency at 6.6234 earlier in the day.
The PBOC set the USDCNY at a rate of 6.6234 at the daily fixing today.
The offshore USDCNH is trading at 6.72318 currently. The recent high for that currency pair (which floats freely) reached 6.7328.
The spread between the fixed rate (USDCNY) and the USDCNH can be explained by the stronger dollar today. It may also be traders expecting that China will be weakening its currency as a way to counteract the Trump tariffs.
Trump announced that they would look to increase tariffs on $200B of additional goods. China relies more on exports to the US for growth. The tariffs could make China goods more expensive (all things equal). A lower currency would counteract some of that impact and might be a way that China could fight back outside of increasing tariffs on US goods.
There were other reports that they might also slow down the approval process for mergers and could also increase regulations (or have spot checks of businesses). All of which is not all that pretty.
What is clear, is the CNY and CNH seems to be weakening once again with yesterday and today's run higher.
