Offshore Yuan Steady

2026-10-12 05:01 By Czyrill Jean Coloma 1 min. read

The offshore yuan held around 6.69 per dollar on Tuesday, after recently hitting a more than four-year high, as central bank guidance kept the currency steady.

The central bank set the yuan’s daily midpoint at 6.7298 per dollar, its firmest level since February 2, 2023, underscoring policymakers’ tolerance for yuan strength.

The yuan was also underpinned by resilient Chinese exports and bullish calls from Western banks, which have argued that the currency remains undervalued.

Goldman Sachs’ Kamakshya Trivedi indicated that the yuan is undervalued by 20% to 25%, as policymakers grow more comfortable with yuan appreciation to support trade ties and boost its global role.

Meanwhile, China and the European Union recently reached an agreement that could reduce Chinese hybrid car exports to the bloc by more than half, as both sides seek to address the EU’s widening trade deficit with China amid growing tensions over trade imbalances and market access.



News Stream
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