Yuan hits 10-month high as dollar weakens

SHANGHAI: China’s yuan rose to a 10-month high against the dollar on Tuesday, underpinned by a weaker greenback on rising expectations of a US rate cut and the strongest official midpoint set by the central bank since November last year. The onshore yuan firmed to 7.1220 per dollar shortly after market opened, the highest since November 6, 2024.

Meanwhile, the dollar sank to an almost seven-week low on Tuesday as investors braced for US data revisions that could show the jobs markets in worse shape than initially thought.

A weaker dollar has helped the yuan rise 2.5 percent this year.

UBS traders said they did not anticipate significant yuan moves during onshore trading hours, citing a steady fix.