FX.co ★ Offshore Yuan Hits Fresh 34-Month High

The offshore yuan strengthened to around 6.83 per dollar on Thursday, extending its rally for a fourth consecutive session and marking its strongest level since April 2023, as the US currency remained under pressure. The dollar has been weighed down by persistent uncertainty over Washington’s tariff policies, eroding confidence in the world’s primary reserve currency.

Market sentiment was further dampened by caution ahead of another round of US–Iran nuclear talks in Geneva later in the day, a development closely watched by global investors.

The yuan’s gains came despite an official daily fixing that was significantly weaker than expected, widely interpreted as an attempt by authorities to slow the currency’s rapid appreciation. The People’s Bank of China set the midpoint at 6.9228 per dollar, 623 pips below Reuters’ estimate and the widest deviation on record.

Investors are now focused on next week’s PMI releases, which are expected to offer fresh insight into the underlying strength of China’s economy.