China's central bank has set the daily reference rate for the yuan at its weakest level since late 2023, indicating a shift towards allowing the currency to depreciate in response to a strengthening dollar.

This decision aligns with market expectations, but it may disappoint traders hoping for more aggressive intervention from Beijing to counter the rise of the dollar.

Traders were anticipating a stronger response from Beijing, but the central bank's move suggests a more passive approach to the currency's depreciation.