China's yuan touches new high since 2022 on weaker dollar, export resilience

China’s yuan briefly climbed to 6.6765 per dollar on Wednesday, its strongest level since June 28, 2022, before retreating to 6.6791 by 0250 GMT. Business Recorder reported that export strength and a weaker US dollar supported the currency.

China’s third-quarter growth exceeded expectations, with exports offsetting cautious consumer spending. Analysts cited domestic resilience, capital inflows and companies converting foreign-exchange earnings into yuan as supporting factors, while Goldman Sachs estimated net foreign-exchange inflows of $50 billion in September and a conversion ratio of 66%, up from 63% in August. The yuan has gained 0.4% against the dollar this month and 4.7% this year; the People’s Bank of China set its daily midpoint at 6.7192 per dollar.