SHANGHAI: China’s offshore yuan on Friday hit the strongest level against the dollar in four years, as traders bet this week’s US rate hike has not derailed the yuan’s appreciation cycle.
In the onshore market, the yuan strengthened about 0.15 percent and is on track for its third straight weekly gain, as traders await next week’s meeting between US President Donald Trump and Chinese leader Xi Jinping, which could ease some trade tensions.
Bank of America forecast the yuan to firm another 1.6 percent by the end of this year.
Offshore yuan hit 6.6956 per dollar in morning trade, the strongest level since July, 2022.
In the onshore market, the yuan changed hands at 6.6983 per dollar in late morning trade, the strongest level since January 2023.
The dollar index gained earlier this week ahead of Wednesday’s rate hike by the US Federal Reserve, but the rally eased on Friday.