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28.01.202605:33:03UTC+00Offshore Yuan Trades Near 32-Month High

The offshore yuan hovered around 6.93 per dollar on Wednesday, reaching its strongest level since May 2023. This boost was primarily a result of a robust daily fixing coupled with the weakening of the U.S. dollar. The central bank set the midpoint rate at 6.9755 per dollar, the highest level observed since May 2023, exceeding the previous session's figure by more than 100 pips—marking the most significant single-day change since August. This recent adjustment reflects the central bank's careful strategy to facilitate a controlled currency appreciation while discouraging overly aggressive speculative activities. Externally, the yuan gained further support from a declining U.S. dollar after President Donald Trump commented that recent currency fluctuations were not significant. Additionally, a surge in currency settlements preceding the Lunar New Year provided extra backing for the yuan. Investors are now eagerly anticipating the release of upcoming PMI data, as both official and private surveys are expected to provide fresh perspectives on China’s economic performance.

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