Offshore Yuan Hits Fresh 15-Month Peak

2025-12-24 04:40 By Joshua Ferrer 1 min. read

The offshore yuan strengthened to around 7.01 per dollar on Wednesday, hitting a fresh fifteen-month high, driven by strong official midpoint fixing and seasonal year-end demand.

Exporters typically convert more foreign currency into yuan at year-end to meet payments and administrative requirements, a trend that could extend into January ahead of the Lunar New Year.

Additionally, the People’s Bank of China set the daily midpoint at 7.0471 per dollar, its strongest since September 30, 2024, although still below market estimates, signaling efforts to moderate rapid gains.

Despite the strong fix, the central bank has consistently maintained the midpoint below estimates since late November, a move traders interpret as an effort to rein in yuan momentum.

The currency has gained roughly 3.9% so far this year, on track for its largest annual rise since 2020, supported by a broad dollar weakness, easing US-China trade tensions, and resilient Chinese exports.



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