China Sets Yuan Midpoint at Strongest Level Since 2023

The People's Bank of China has strengthened its yuan midpoint to its strongest level since February 8, 2023. This move follows a trend that began in January 2026, when the midpoint reached a 32-month high.

The current USD/CNY exchange rate is between 6.75 and 6.78, indicating a stronger yuan compared to earlier in the year when rates were closer to 6.89-7.00 per dollar.

Market observers suggest this move may be part of China's strategy to manage inflation and influence global trade dynamics. The adjustment is likely to have ripple effects on commodities, including gold, due to its potential impact on inflation expectations and the US dollar's strength.