Yuan Hits Four-Year High, PBOC Tempers Gains

The yuan has climbed to its strongest level against the dollar in about four years, supported by a weaker U.S. currency, robust Chinese exports and companies converting export earnings into yuan. Onshore trading briefly reached its strongest level since June 2022, while the People’s Bank of China set its daily midpoint weaker than market expectations, a move analysts see as an effort to slow appreciation rather than reverse it. The currency’s gains come as investors await major central-bank decisions and new signals from Chinese policymakers. While Goldman Sachs sees room for further appreciation, a much stronger yuan could hurt exporters’ competitiveness, and China’s uneven economic recovery remains a concern.