China just fixed the yuan to its weakest level since 2011 -- here's what's happening in FX

Good morning!

The big news of the day is that the People’s Bank of China fixed the Chinese yuan to its lowest level since March 2011.

The PBoC set the midpoint of its yuan fix at 6.5468 per dollar, down 0.34% from Tuesday.

This decision comes as the central bank looks to soften the blow of a potential Fed interest-rate hike. Members of the FOMC have hinted that the hike could come as early as June 15.

As for the rest of the world, here’s the scoreboard as of 7:51 a.m. ET:

  • The euro is little changed at 1.1147 against the dollar after Greece and its creditors reached a deal. The deal opens the door for Greece to receive €10.3 billion from its creditors along with debt relief once the current deal ends in 2018. Separately, Germany’s Ifo Business Climate rose to 107.7 in May, up from 106.7 in April — the highest reading since December.
  • The Russian ruble is stronger by 0.4% to 65.9100 per dollar as oil surges to a seven-month high. Brent crude oil is up 1.3% at $49.23 per barrel.
  • The Canadian dollar is flat at 1.3115 per dollar ahead of the Bank of Canada’s latest interest rate announcement, which will be out at 10 a.m. ET. The central bank is expected to hold its key rate at 0.50%.
  • The US dollar index is little changed at 95.54 ahead of a couple of data points. Richmond Fed Manufacturing and new home sales will both be released at 10 a.m. ET.

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