China’s yuan climbs to its strongest level in nearly three years amid increased corporate buying

Yuan Climbs to Highest Point in Nearly Three Years

China’s yuan reached its strongest value in almost three years on Wednesday, driven by robust corporate demand and optimistic export forecasts. The onshore yuan strengthened to 6.8703 against the US dollar, marking its highest point since April 18, 2023, and continued its upward trend following the Lunar New Year holiday. Meanwhile, the offshore yuan also appreciated, hitting 6.8665, a level not seen since the same date.

According to analysts from Nanhua Futures, ongoing corporate requirements are likely to continue supporting the yuan’s momentum. They noted that market participants are closely monitoring how companies manage their foreign currency transactions. As the seasonal effects of settlement diminish, the relationship between the USD/CNY exchange rate and the US dollar index is expected to shift.