Chinese Yuan Hits 4-year High

The Chinese Yuan touched 6.67 against the USD, the highest since June 2022. Over the past 4 weeks, US Dollar Chinese Yuan lost 0.66%, and in the last 12 months, it decreased 6.2%.

The offshore yuan traded around 6.66 per dollar, holding near its strongest level since June 2022, supported by robust export growth and firmer daily central bank fixings. Exports surged 36.3% yoy to USD 447.18 billion in September 2026, marking the fastest growth in seven months. China’s economic resilience was further underscored by industrial profits, which rose 15.5% yoy to CNY 6.03 trillion in the first nine months of 2026, easing slightly from 15.7% in the January-August period. Adding to the yuan’s strength, the People’s Bank of China has allowed the daily midpoint to strengthen, with the currency gaining 0.6% against the dollar this month and more than 4% so far this year. Separately, the PBoC said it would set up a swap facility to provide emergency liquidity support to non-bank financial institutions facing large-scale redemptions. Investors are also monitoring the Communist Party’s Fifth Plenum for policy guidance and further clarity on Beijing’s economic priorities.

The offshore yuan strengthened to around 6.69 per dollar on Monday, reaching its strongest level since June 2022 as investors welcomed a string of strong economic data. China’s economy grew 4.5% year-on-year in Q3 2026, accelerating from Q2’s three-year low of 4.3% and beating market expectations of 4.4%. Growth in the first nine months reached 4.6%, keeping the economy on track to meet the government’s full-year target of 4.5%-5%. Meanwhile, industrial output growth accelerated to 5.5% in September from 5.2% in August, while retail sales growth picked up to 1.1% from 0.4%. The surveyed urban unemployment rate also edged down to 5.2% from a five-month high of 5.3%. Investors will look to China’s top financial regulators at the Financial Street Forum in Beijing later today for policy signals to further support the economy amid growing speculation about a shift from the seven-day policy rate to an overnight benchmark.