Yuan Hits Three-Year High, PBOC Eases Curbs

China’s yuan rose to about 6.6950 per dollar, its strongest level in more than three and a half years, before closing near 6.6955. The People’s Bank of China set its daily midpoint at 6.7487, the strongest fixing since February 2023, and has recently allowed the guidance rate to move closer to market expectations after months of restraining appreciation. Analysts say the shift may reflect efforts to maintain stability ahead of the planned summit between current President Donald Trump and Chinese President Xi Jinping, rather than a commitment to rapid or lasting yuan gains. Trump and Xi are expected to discuss trade, artificial intelligence, supply chains and Middle East tensions after senior officials from both countries held preparatory talks, though analysts do not anticipate a major breakthrough.