Yuan hits 4-year high as strong GDP data tempers need for stimulus

China’s yuan reached its strongest level in more than four years on Monday, after third-quarter growth exceeded forecasts and reduced pressure on Beijing to provide stronger stimulus. Business Recorder reported that the economy grew 4.5% year on year in the quarter, while September retail sales also gathered pace.

The onshore yuan was trading at 6.6826 per dollar at 0215 GMT, its highest since July 2022, while the offshore rate stood at 6.6818, up about 0.08%. The People’s Bank of China set its daily midpoint at 6.7208 per dollar, its firmest since February 2, 2023. Analysts cited by the report said export surpluses and companies converting dollars support the yuan, but a wide China-US interest-rate gap could limit further gains; investors are also watching remarks by Chinese financial officials.