FX.co ★ Offshore Yuan Strongest Since 2022

The offshore yuan strengthened to around 6.69 per dollar on Friday, extending the previous session’s gains and marking its firmest level since July 2022. The move came as a stronger daily fixing from the People’s Bank of China continued to underpin the currency. The central bank set the daily midpoint at 6.7521 per dollar, compared with 6.7580 on Thursday, reflecting an upward bias in the fixing for an eighth straight session — the longest such streak since 2023. This pattern suggests policymakers may be increasingly comfortable with a stronger yuan ahead of President Donald Trump’s meeting with Chinese leader Xi Jinping in the US on September 24. A firmer currency could help ease trade tensions between the two economies, as Western officials have long argued that an undervalued yuan gives Chinese exporters an unfair competitive advantage. In a related development, US Treasury Secretary Scott Bessent is also scheduled to meet Chinese Vice Premier He Lifeng this weekend.