Chinese yuan hits strongest level against the dollar since July 2022
The yuan rose to its highest value against the U.S. dollar since July 2022, with offshore and onshore rates both breaking recent peaks after supportive moves by the People's Bank of China.
The Chinese yuan hit its strongest level versus the U.S. dollar since July 2022, with the offshore market in Hong Kong quoting about 6.6962 yuan per dollar and the onshore market in mainland China climbing to 6.6973, both exceeding the prior peak recorded at the start of 2023. The People's Bank of China announced a daily reference rate of 6.7521 yuan per dollar, its eighth straight day of appreciation - the longest run of gains since 2023.
The central bank’s actions suggest Beijing feels comfortable with a firmer yuan as President Xi Jinping prepares to meet President Donald Trump in the United States. While the PBOC continues to guide the rate upward, it caps daily fluctuations at 2% to prevent abrupt moves. Analysts note that the upcoming summit may have spurred the recent gains, given Trump’s criticism of alleged Chinese currency manipulation.
The yuan’s strength is also bolstered by robust Chinese export performance, despite higher U.S. Treasury yields and a widening yield gap with Chinese sovereign debt. Historical context shows the yuan approached its lowest level since 2007 in early 2025, prompting earlier interventions to curb depreciation and protect export competitiveness.
