ICYMI: China has adjusted its yuan basket weightings for this year

This builds from Eamonn’s post earlier: The yuan has hit its highest since mid-October 2022 (using its trade-weighted value)

According to the CFETS, which is overseen by the PBOC, the dollar’s weighting in the yuan currency basket has been adjusted to 18.903%. That is down from 19.46% previously with the change having gone into effect starting from 1 January. Meanwhile, the euro’s weighting has been reduced to 17.902% from 18.08% before and the yen’s weighting down to 8.584% from 8.963% previously.

In any case, it doesn’t change the line in the sand for USD/CNY currently at least. The pair is continuing to knock on the door of the 7.30 mark since two weeks ago and is keeping thereabouts still. For now, that seems to be where the PBOC is drawing the line as it looks to conjure up a game plan against Trump’s tariffs.

This article was written by Justin Low at www.forexlive.com.