Yuan Hits Fresh Multi-Year High Amid Fed, BOJ Decision Anticipation

China's yuan strengthened to its highest level in nearly three years on Monday after the country's central bank set a stronger daily guidance. The currency reached a high of 6.7039 per US dollar in early trade, its strongest level since February 2, 2023. The offshore yuan traded at 6.7074 yuan per dollar, up about 0.03% in Asian trading.

The move comes ahead of crucial policy decisions from the Federal Reserve and the Bank of Japan, which have investors on edge. Global currency markets were largely muted as traders braced for possible rate hikes from these key central banks.