The offshore yuan strengthened to around 6.68 per dollar on Tuesday, rising for a fourth straight session and reaching its highest level since June 2022, as stronger economic growth eased pressure for further monetary stimulus. The PBoC left the one-year loan prime rate (LPR) unchanged at 3% and the five-year LPR at 3.5%, keeping both at record lows for the 17th consecutive meeting.
China’s GDP expanded 4.5% year on year in Q3 2026, rebounding from Q2’s three-year low and keeping the government’s full-year growth target of 4.5%–5% within reach. The improvement gives policymakers more scope to delay additional broad-based easing after introducing new targeted measures to support the domestic economy.
At the same time, China’s increasing dependence on foreign trade against a backdrop of weak domestic demand has drawn criticism from foreign leaders, who accuse Beijing of maintaining an undervalued yuan to give its exporters an unfair competitive advantage. According to IMF estimates, the yuan was undervalued by between 17.3% and 25.3% in 2026, with a midpoint estimate of 21.3%.
