China's central bank just gave the US dollar another kick

Photo by Michael Dodge/Getty Images

The People’s Bank of China (PBOC) has heaped further pressure on the U.S. dollar, fixing the USD/CNY sharply lower on Thursday.

The PBOC set the exchange rate at 6.5419, well below the prior fixing level of 6.5521 and the last traded price of 6.5764 on Wednesday.

At 0.16%, it was the largest deviation from the previous fixing level since December 4 last year. It was also the strongest fix seen since January 6 this year.

On the back of weak economic data and dovish comments from a leading Federal Reserve official, the US dollar index fell 1.6% on Wednesday, the steepest one-day drop registered since December 3 last year.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.