China yuan nears 3-1/2-year high as Fed rate hike bets fade
The Chinese currency is benefiting from supportive domestic policy signals and a weaker dollar as expectations for tighter US monetary policy fade.
China's yuan has reached a 3-1/2-year high against the dollar, nearing its strongest level since February 2023, as expectations for a U.S. Federal Reserve rate hike in September fade. The spot yuan traded at 6.7443 to the dollar, up 0.01% from the previous session, and hit its strongest level since February 8, 2023. Analysts attribute the yuan's strength to the People's Bank of China's continued guidance of a lower USD/CNY rate and the fading expectations of a Fed rate hike, which could weaken the dollar and support emerging-market currencies like the yuan.
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