The People's Bank of China set the central parity rate for the yuan against the US dollar at 6.8109 on Monday, representing a strengthening of 41 basis points from the previous fix.
According to the CME FedWatch Tool, market pricing suggests a 98.5% probability that the US Federal Reserve will keep its benchmark interest rate unchanged at its June policy meeting. The probability of a cumulative 25 basis point rate cut by June is priced at 1.5%.
For the July meeting, the probability of the Fed holding rates steady is seen at 91.3%. The market currently assigns a 7.4% chance of a cumulative 25 basis point rate hike by July, and a 1.4% probability of a cumulative 25 basis point rate cut by that time.
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