HONG KONG: China’s yuan strengthened to more than a 3-1/2-year high against the US dollar on Monday as the central bank softened its curb on currency appreciation ahead of the meeting this week between the leaders of China and the US.
US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng concluded talks in New York on Sunday, laying the groundwork for President Donald Trump and Chinese President Xi Jinping to consider at their summit on Thursday.
The yuan strengthened to a high of 6.6957 per dollar in early trade, the strongest level since January 16, 2023.
The offshore yuan traded at 6.6946 yuan per dollar, up about 0.03 percent in Asian trade.
Prior to the market open, the People’s Bank of China set the midpoint rate at 6.7487 per dollar, the strongest since Feb 3, 2023, but 536 pips weaker than a Reuters estimate. The spot yuan is allowed to trade 2 percent either side of the fixed midpoint each day.