Chinese Yuan Rises to 6.75 Per US Dollar, Hitting Strongest Level Since February 2023

The Chinese yuan strengthened to approximately 6.75 against the US dollar, reaching its highest level since February 2023, according to recent market data and reports.

The offshore yuan extended gains in recent sessions, trading near multi-year highs as the People’s Bank of China (PBOC) set relatively firm daily midpoint rates and broader dollar weakness provided support. Onshore trading also reflected the appreciation, with the currency touching levels not seen in over three years.

The move comes amid signals of policy support from Chinese authorities, including efforts to stabilise growth and bolster capital markets. A softer US dollar index, influenced by global risk sentiment and other currency moves, has contributed to the yuan’s advance. Market participants noted continued tolerance from Beijing for gradual appreciation, even as the central bank has at times adjusted fixings to moderate the pace of gains.

The currency’s rise follows a broader trend of strengthening over recent months and years, with the yuan posting notable gains against the greenback.

Trading levels around 6.75 mark a significant recovery from weaker points in prior years, when the yuan had traded above 7 per dollar for extended periods. The development is being closely watched by markets for implications on trade, capital flows, and regional currencies.