Yuan Rebounds After Strongest Fix in Six Months

2026-03-03 02:55 By Joshua Ferrer 1 min. read

The offshore yuan strengthened to around 6.89 per USD on Tuesday, snapping two sessions of losses after the central bank delivered its largest midpoint adjustment in over six months.

The People’s Bank of China set the daily fixing at 6.9088 per dollar, 148 pips firmer than the previous level, signaling efforts to steady the currency amid heightened geopolitical tensions in the Middle East.

Still, the midpoint came in weaker than market estimates, suggesting authorities are balancing support for the currency with flexibility.

The move also follows recent steps by the central bank to adjust FX forward reserve requirements, highlighting its calibrated approach to rein in the fast-rising yuan while cushioning exporters from sharp swings.

Attention now turns to China’s annual “Two Sessions”, scheduled from March 4 to around March 11, where authorities are expected to set economic targets, outline policy priorities, and release the 15th Five-Year Plan detailing objectives for 2026–2030.



News Stream
Chinese Yuan Hits 4-week High
The Chinese Yuan touched 6.77 against the USD, the highest since June 2026. Over the past 4 weeks, US Dollar Chinese Yuan lost 0.16%, and in the last 12 months, it decreased 5.82%.
2026-07-16
Offshore Yuan Extends Losses
The offshore yuan weakened to around 6.77 per dollar on Friday, extending losses from the previous session and moving further away from a recent one-month high as mixed economic data reinforced concerns over China’s uneven recovery. China’s GDP expanded 4.3% year-on-year in Q2, marking the weakest growth since Q4 2022 and falling below Beijing’s 2026 target range of 4.5%–5.0%. Fixed-asset investment declined 5.7% in the first half of the year, worse than both market expectations and the January–May pace of decline. However, signs of resilience emerged, with industrial production accelerating to a three-month high of 5.3% in June, retail sales rebounding 1%, and the urban unemployment rate easing to a one-year low of 5.0%. China also reported its second-largest monthly trade surplus on record in June, as both exports and imports reached record highs, driven by surging chip prices and robust global demand for AI data center hardware despite ongoing Middle East tensions.
2026-07-15
Offshore Yuan Rebounds on Trade Data
The offshore yuan rose to around 6.77 per dollar on Tuesday, rebounding from the previous session as stronger-than-expected trade data pointed to resilient external demand. Exports surged 27% year-on-year to a record USD 412.4 billion, while imports jumped 36% to an all-time high of USD 286.8 billion, both exceeding forecasts. As a result, China posted its second-largest trade surplus on record at USD 125.6 billion, primarily driven by strong global demand for AI-related hardware and higher semiconductor prices. These factors continued to support Asia's trade flows, helping cushion the impact of domestic economic weakness. China's economy is projected to slow to 4.5% year-on-year in the second quarter on Wednesday, down from 5.0% in Q1 and near the lower end of Beijing's 2026 growth target range of 4.5%–5.0%. Growth has been weighed down by weak consumer spending, a prolonged property downturn, and subdued private investment.
2026-07-14