China's yuan hits 3-1/2-year high as PBOC extends fixing streak ahead of Xi-Trump meeting
SHANGHAI: China’s yuan climbed to a 3-1/2-year high against the dollar on Tuesday after the central bank set a firmer daily fixing for the 10th straight session, the longest streak since late 2023, while investors awaited a meeting between the leaders of the world’s two largest economies later this week. US Treasury Secretary Scott Bessent offered positive comments about the US-China trade…
China's yuan has reached a 3-1/2-year high against the dollar as the People's Bank of China maintains a stronger daily fixing for the 10th consecutive session, a record streak since late 2023. This comes as investors eagerly anticipate a meeting between US President Donald Trump and Chinese President Xi Jinping from September 23 to 25, during which they will discuss whether to extend a trade truce that helped avoid a global economic shock last year.
US Treasury Secretary Scott Bessent expressed optimism about the US-China trade relationship ahead of the summit. The People's Bank of China set the midpoint fixing rate at 6.7459 per dollar, the highest since February 3, 2023, although it was 470 pips lower than a Reuters estimate of 6.6989. The onshore yuan traded at a high of 6.6936 per dollar at one point in the spot market, its strongest level since January 2023, before settling at 6.6969 as of 0302 GMT.
The Chinese yuan has appreciated by around 4.4% against the dollar this year, making it one of Asia's top-performing currencies, driven by strong exports. With the yield gap between China and the United States near a record high, some investors anticipate that further yuan appreciation will be more gradual.
Written by urgent.news from Business Recorder's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
