The People’s Bank of China set the yuan’s daily midpoint at 6.7852 per dollar on August 25, 633 pips below the Reuters consensus estimate. This is the largest weak-side deviation since February 27. The yuan has gained roughly 4% year-to-date against the dollar and recently touched its strongest level in 3.5 years. Beijing is moderating the pace of appreciation to protect export competitiveness and maintain stability rather than reversing the trend. Since late July 2026, the PBOC has consistently set midpoints below expectations, with prior deviations of 581 and 593 pips. Traders should watch the daily fix announcements, which function as policy signals. If the PBOC slows the appreciation, the currency tailwind for Chinese assets may diminish.