China's yuan climbs to fresh 4-year high, global central bank meetings in focus

Business Recorder reported that China’s onshore yuan reached 6.6740 per dollar on Thursday, its strongest level since June 2022, before easing to 6.6749. The offshore currency was at 6.6744, up about 0.01% in Asian trading, while activity was subdued and onshore turnover fell to about $10.6 billion.

The People’s Bank of China set its daily midpoint at 6.7195 per dollar, 439 pips weaker than the Reuters estimate, in its largest such deviation since September 23. Traders and analysts said the guidance indicated an effort to temper the yuan’s advance, while strong exports and foreign-exchange settlements have supported the currency this year. Attention is shifting to next week’s Federal Reserve, Bank of Japan and European Central Bank meetings, where rates are expected to remain unchanged despite a hawkish stance; markets are also assessing US rate expectations amid oil-related inflation concerns.