The central parity rate of the US dollar against the Chinese yuan rose for

China's central bank set the yuan's daily midpoint at 6.7180 per dollar on November 4, 30 pips weaker than the prior fix and the softest since October 23, marking a third straight session of depreciation and coming in notably weaker than Reuters' 6.6811 estimate. The onshore yuan fell to around 6.68 in morning trade, its weakest since October 19, with the offshore rate weakening in tandem. The move follows the People's Bank of China's November 3 announcement that it will raise the foreign exchange deposit reserve ratio for financial institutions to 6% from 4% effective November 15, the first such increase since December 2021, which briefly pushed offshore dollar-yuan up more than 280 pips to 6.675. Market participants read the hike as an effort to curb the yuan's rapid appreciation, which has gained about 5% against the dollar this year and lifted the CFETS yuan index to its highest since July 2022. Traders will watch whether the stronger fixing bias and reserve-requirement hike slow the currency's climb and whether the PBOC follows with further easing measures.