Chinese yuan at highest level against dollar in more than 4 years

The Chinese yuan rose to its highest level against the dollar since June 2022 during early Asian trading on Monday, supported by a decline in oil prices and US bond yields. The onshore yuan reached 6.6682 per dollar before slightly retreating. The People's Bank of China set the reference rate at 6.7162 per dollar, the strongest since February 2023 but weaker than Reuters expectations.

The Chinese yuan rose to its highest level against the US dollar since June 2022 during early Asian trading on Monday. The onshore yuan reached 6.6682 per dollar before slightly retreating to 6.6691 per dollar at 02:52 GMT, up 0.02% from the previous close. This level represents the strongest price for the Chinese currency in over four years, amid pressure on the dollar from falling oil prices and US bond yields. In an attempt to manage currency movements, the People's Bank of China set the daily reference rate at 6.7162 per dollar, the strongest since February 2023, but weaker than Reuters estimates. Analysts at Barclays noted that setting the reference rate at levels weaker than market expectations reflects the Chinese central bank's intention to slow the pace of yuan appreciation rather than allowing it to rise rapidly against the dollar.