Yuan steady despite dollar strength during China's Golden Week holiday

According to Business Recorder, the onshore yuan held steady on Thursday once mainland markets resumed after a week-long holiday. In mid-morning dealings it traded at 6.7030 per dollar, slightly firmer than the September 30 close. Before the open, the People's Bank of China set a weaker midpoint of 6.7367 per dollar.

The offshore yuan edged up roughly 0.1% during China's Golden Week holiday even as the dollar index rose about 0.8% and reached an 18-month peak earlier this week. Nanhua Futures said a weaker euro, amid rising concern over Europe's debt, helped lift the dollar index. The yuan has climbed nearly 9% against the dollar since late 2024, marking a seventh straight quarterly rise.

Goldman Sachs argued in a report that Chinese export growth has room to run over the next few years despite a historically high trade surplus. Pantheon Macroeconomics' Duncan Wrigley said large capital outflows partly offset the yuan's upward pressure, which he tied to the wide yield gap between Chinese and US Treasuries. Data published on September 29 showed residents bought $119 billion of foreign bonds and $44 billion of overseas equities and funds in the first six months of 2026.