Yuan Hits Three-Year High as Dollar Rebounds Ahead of Fed Decision

The People's Bank of China (PBOC) set the yuan's central parity rate against the dollar at its strongest level since February 2023, with a value of 6.7670 per dollar.

This represents a third consecutive daily strengthening and a significant milestone for the currency, which has been gaining ground in recent sessions.

However, despite the PBOC's efforts to signal a bias toward yuan appreciation, the US Dollar Index advanced for a fifth straight session, driven by expectations of an interest rate hike from the Federal Reserve.

The stronger dollar has put pressure on non-dollar currencies, including the yuan, which slipped 0.01% and 0.03% against the dollar in onshore and offshore markets, respectively.