Chinese Yuan Hits 3-1/2-year High

The offshore yuan held its gains around 6.74 per dollar on Friday, remaining at its strongest level since February 2023, as investors raised expectations for additional policy support following PMI data releases. Official figures showed China’s manufacturing PMI fell to 49.2 in July 2026 from 50.3 in June, marking its first contraction since February, while the non-manufacturing PMI slipped to 49.0 from 50.2, signaling a renewed downturn after two months of modest expansion. The weak readings followed data showing Q2 GDP growth missed expectations and fell below the government’s 4.5%-5% target range. At the Politburo meeting, authorities vowed timely policy measures and to accelerate public spending and government bond fund usage. However, policymakers are expected to adopt a cautious approach to unveiling additional stimulus measures amid double-digit export growth.

The Chinese Yuan touched 6.75 against the USD, the highest since February 2023. Over the past 4 weeks, US Dollar Chinese Yuan lost 0.59%, and in the last 12 months, it decreased 6.32%.

The Chinese Yuan touched 6.76 against the USD, the highest since June 2026. Over the past 4 weeks, US Dollar Chinese Yuan lost 0.52%, and in the last 12 months, it decreased 6.25%.