The PBOC will not necessarily follow the Fed's rate hike as China seeks stability ahead of a leadership reshuffle this fall, observers said.
Vishnu Varathan from Mizuho Bank says it won't trigger any immediate tightening from PBOC, which is watching its own money market needs.
Bitcoin has now more than tripled in value since trading at $968 on Dec. 31, and has gained nearly 30 percent in June alone.
Much of the progress made to allow market forces to influence the direction of the yuan has been reversed, says Gareth Berry, Macquarie.
China’s yuan tapped its highest levels since November, despite a weak economic reading, as authorities tinkered with renminbi policies.
China is likely to experience lower growth and a weaker yuan, but the timings of when those occur are difficult to predict, says Simon Warner, AMP Capital.
If China intends to peg the yuan to the dollar, it will not be able to maintain free interest rates, says Andrew Freris, Ecognosis Advisory.
Michael Every, Rabobank, says he expects the dollar/yuan to trade at 7.80 instead of current levels around 6.80 in twelve months time.
Ken Peng of Citi Private Bank explained the PBOC added a new element of arbitrary influence they are calling 'counter-cyclical' factors for the yuan fix.
Brett McGonegal, Capital Link International, weighs in on deleveraging in the Chinese economy and the actions of the PBOC.
The change would mean a stronger state hand and less of a role for market forces in setting the rate, SCMP reports.
Commodity prices usually rally as the Fed heads into a hiking cycle, but it might be different this time, Goldman said in a note Monday.
China services sector growth cooled to its slowest in almost a year in April, even as cost pressures eased, a private survey showed Thursday.
Chinese government officials are offering assurances on currency convertibility, the SCMP reports.
China has been angling to position itself positively ahead of Trump and Xi's meeting this week.
China’s largest banks reported better than expected 2016 earnings, but analysts warned that a property market shock could threaten financial stability.
PBOC chief Zhou Xiaochuan called for greater use of fiscal policy to grapple with structural problems in China, the SCMP reports.
Canada Pension Plan Investment Board president and CEO Mark Machin plans to increase the fund's China investments.
Li Daokui at Tsinghua University says China will attempt to keep a low-profile when it comes to its exchange rate.
Larry Summers, former U.S. treasury secretary, says the issue of sustainability is one that arises from China's growth policies.