Yuan Surges To Three-Year High Ahead Of Trump-Xi Summit
China's yuan strengthened to its strongest level in over three years against the US dollar on Monday, as the central bank appeared to ease its efforts to restrain currency appreciation ahead of the Trump-Xi summit.
The People's Bank of China set the yuan's midpoint rate at 6.7487 per dollar, its strongest level since February 3, 2023, and more than 536 pips weaker than market expectations.
Goldman Sachs analysts said the stronger fixing ahead of the summit was consistent with recent patterns and could give the offshore yuan more room to strengthen.
The yuan's appreciation may also provide a constructive environment for US-China negotiations, according to OCBC, but the bank cautioned against viewing the PBOC's move as the beginning of a prolonged period of yuan appreciation.