{
  "id": 8182865,
  "title": "China's offshore yuan hits strongest in four years ahead of Trump-Xi meeting",
  "url": "https://urgent.news/2026/09/18/chinas-offshore-yuan-hits-strongest-in-four-years-ahead-of-trump-xi",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-18T05:42:39.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40440108/chinas-offshore-yuan-hits-strongest-in-four-years-ahead-of-trump-xi-meeting"
  },
  "original_language": "en",
  "account": "The offshore yuan reached the strongest level against the dollar in four years, according to market reports. This surge occurred ahead of the upcoming meeting between US President Donald Trump and Chinese leader Xi Jinping, which could potentially ease some trade tensions. The onshore market also saw the yuan strengthen by approximately 0.15%, with traders anticipating its third consecutive weekly gain. Bank of America predicts the yuan to increase by an additional 1.6% by the end of the year.\n\nKey factors driving this appreciation include the conversion of export proceeds and the undervaluation of the Chinese Yuan (CNY). Furthermore, there is growing pressure from the G7 to address trade imbalances. The offshore yuan reached 6.6956 per dollar in early morning trading, marking the strongest level since July 2022. Similarly, the onshore yuan traded at 6.6983 per dollar, its highest level since January 2023.\n\nDespite the dollar index gaining earlier in the week due to the US Federal Reserve's rate hike, the rally weakened on Friday. Industry experts note that the yuan's appreciation trajectory has diverged from its previous close correlation with US-China yield spreads. This change is attributed to Chinese exporters holding substantial amounts of foreign exchange and the increasing expectation of CNY appreciation. Consequently, fewer companies are now willing to chase yield spreads due to concerns about losing ground in the currency movement.\n\nHowever, if the Federal Reserve becomes more hawkish, yield spreads may widen, potentially enticing more investors back into the market and exerting downward pressure on the CNY. Another potential downside risk for the yuan comes from China's deflationary risks. While weak domestic demand helps maintain a high current account surplus, it also poses debt deflation risks that could lead to capital outflows during a stress scenario.",
  "summary": "SHANGHAI: China’s offshore yuan on Friday hit the strongest level against the dollar in four years, as traders bet this week’s US rate hike has not derailed the yuan’s appreciation cycle. In the onshore market, the yuan strengthened about 0.15% and is on track for its third straight weekly gain, as traders await next week’s meeting between US President Donald Trump and Chinese leader Xi Jinping,…",
  "key_points": [
    "Offshore yuan reaches strongest level in four years at 6.6956 per dollar",
    "Surge ahead of Trump-Xi meeting may ease trade tensions",
    "Bank of America forecasts 1.6% increase for yuan by year-end"
  ],
  "editors_take": "The yuan's surge to a four-year high signals China's growing leverage ahead of the Trump-Xi meeting, as trade tensions ease and exporters' foreign exchange holdings shift market dynamics.",
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Business Recorder",
        "title": "China stocks on track for best day in a month ahead of Trump-Xi meeting; Hong Kong rises",
        "url": "https://urgent.news/2026/09/18/china-stocks-on-track-for-best-day-in-a-month-ahead-of-trump-xi",
        "published": "2026-09-18T06:12:05.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}