FX.co ★ Yuan Strengthens to Multi-Year High

The offshore yuan strengthened to approximately 7 per dollar on Friday, marking its third straight day of gains and reaching its highest point in over fifteen months. This development comes as investors reacted to indications of strategic policy management from authorities. In a recent maneuver, China set the yuan's daily reference rate below market expectations by a record margin. This move underscores the People's Bank of China's strategic intent to encourage a gradual and controlled appreciation of the currency. The Central Bank's policy aims to support exporters, manage capital flows, and ensure market stability. According to reports from CICC, the yuan is anticipated to maintain relative stability in 2026, balancing goals such as domestic growth, external payment stability, and increasing international adoption.