Yuan Reaches Two-Year High as Markets Await Fed and BOJ Rate Decisions

The Chinese yuan has reached its strongest level in nearly two years against the US dollar. On Monday, it traded at a high of 6.7039 per dollar before easing to 6.7074. This is its highest point since February 2, 2023. The offshore yuan also saw an increase, trading at 6.7074 yuan per dollar.

The rise in the yuan's value comes as investors await policy decisions from the Federal Reserve and the Bank of Japan. Global currency markets were largely muted on Monday, with traders bracing for possible rate hikes from these central banks. The Federal Reserve is expected to pull the trigger on a rate hike this week to tackle persistently high inflation.