China's yuan hits over 4-year high, set for fourth monthly gain

Business Recorder reported that the yuan reached a level not seen since June 6, 2022, on Friday, with the onshore rate last at 6.659 per dollar after opening at 6.6600. It was also approaching a fourth consecutive monthly advance and a fifth weekly rise. The currency has gained 5.0% against the dollar so far this year.

Exporters have been exchanging dollar receipts for yuan and increasing hedges, adding support to the currency as China’s exports remain robust. Before trading began, the People’s Bank of China placed its daily midpoint at 6.7138 per dollar, the strongest setting since February 2023, while the dollar weakened alongside Treasury yields amid selling in AI shares. The bank’s midpoint allows the spot rate to move within a 2% band on either side. OCBC analysts said the official settings indicate no clear effort to halt appreciation, though its pace could ease.