Offshore Yuan Hits Fresh 34-Month High

2026-02-16 03:07 By Joshua Ferrer 1 min. read

The offshore yuan strengthened to around 6.89 per USD, hitting a fresh thirty-four-month high, as mainland markets entered the week-long Lunar New Year holiday, shifting price discovery to offshore trading.

With onshore exchanges closed for the Spring Festival, liquidity conditions are thinner than usual, leaving price action more sensitive to flows and contributing to the yuan’s stronger move.

The firmer tone also reflects expectations that strong holiday travel and consumption could lend support to near-term domestic activity, even as authorities continue to manage overall currency stability.

With mainland trading paused, price swings may remain more pronounced until full market participation resumes later this week.

On the geopolitical front, reports that the US has paused several tech-security measures targeting China ahead of a planned April meeting between Presidents Donald Trump and Xi Jinping have eased near-term tensions, though broader strategic frictions remain.



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