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Yuan strengthens to 6.7424, hitting highest level since Feb 2023
Societe Generale links the firmer yuan to dollar weakness and falling US yields, while the PBoC keeps an accommodative stance without signaling explicit rate or reserve requirement cuts.
Chinese yuan trading firmed to 6.7424, its strongest level since February 2023, as dollar weakness and lower US yields supported the currency, according to analysis cited by Societe Generale through FXStreet.
The PBoC, FXStreet notes, reiterated an accommodative stance and targeted support, while avoiding explicit signals for rate cuts or reserve requirement ratio, or RRR, cuts. The move coincided with 10-year Chinese government bond, or CGB, yields falling below 1.70%.
FXStreet also frames broader market context for the dollar, noting that recent easing expectations around an imminent Fed interest rate hike contributed to the US currency retracement, which in turn helped the yuan’s rise.
The report places the yuan move alongside other FX and rates developments, including GBP/USD and EUR/USD strength and gold’s rebound, all tied to shifting dollar and yield expectations.
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