China Adjusts Yuan Amid Dollar Downturn

China raised the official yuan midpoint guidance for the first time in a week due to broad dollar weakness. The yuan is allowed to trade within a 2% band, and the new rate is stronger than market estimates, possibly to stabilize the currency against global trends.

China's central bank, the People's Bank of China (PBOC), adjusted the official yuan midpoint guideline upwards on Friday for the first time in seven days to counter the dollar's broad downturn in global markets.

The new rate, set at 7.2087 per dollar, is firmer than both the previous fix and market estimates, allowing the yuan to trade within a 2% band. This move is interpreted as an effort by the PBOC to maintain currency stability amid fluctuating international economic conditions.

Globally, the dollar experienced a decline against major currencies as President Donald Trump reversed his stance on imposing tariffs, affecting currency markets worldwide.

(With inputs from agencies.)