Yuan Breaks Through 6.7 as Export Growth Drives RMB Appreciation

The yuan broke through 6.7 against the US dollar on September 18, its highest level since February 2023.

According to Wu Ge of Changjiang Securities, market concerns about US fiscal sustainability and Federal Reserve independence explain the divergence from rate-differential logic.

China's exports have been strong, rising 25.0% year on year in August and growing 19.3% cumulatively in January-August, with a trade surplus of USD 806.3 billion in the first eight months.

Ming Ming of CITIC Securities said that the pricing anchor of the RMB exchange rate has shifted to the trade account, with strong exports and released settlement demand providing strong support.