Yuan hits fresh multi-year high as markets await Fed, BOJ decisions

Business Recorder reported that the Chinese yuan rose to its firmest level against the US dollar in several years on Monday, reaching 6.7039 per dollar in early dealings. That was the strongest point since February 2, 2023, before the currency eased back to 6.7074. The offshore yuan traded about 0.03 percent higher in Asian sessions.

The People's Bank of China set its daily midpoint at 6.7698 per dollar, below the 6.77 level for the first time in over three years. Even so, the fixing was 615 pips softer than a Reuters estimate, and spot trading is allowed to move 2 percent either side of that midpoint. Currency markets were largely calm as investors anticipated possible rate increases from the Federal Reserve and Bank of Japan during a key week for monetary policy.

CICC analysts said Federal Reserve policy could strongly shape the yuan, adding that a dovish result might lift it beyond 6.70, while otherwise it would probably stay close to present levels. Goldman Sachs analysts said clients expect gradual appreciation but doubt how much the economy and central bank can accept. They also noted that foreign exchange losses equated to close to 4 percent of overall earnings among Chinese-listed firms in the opening half of 2026, the largest share in a decade.