The Chinese yuan ended regular trading on the 21st at 6.6955 per dollar, its strongest level since June 30, 2022. Ahead of this week's US-China leaders' summit, the People's Bank of China has eased its stance against yuan appreciation. The yuan at one point hit 6.6950 per dollar, its strongest since January 16, 2023, while the offshore yuan traded about 0.03 percent higher in Asian hours at 6.6946 per dollar. Before the market opened, the PBOC set the daily fixing against the dollar at 6.7487, the strongest yuan level since February 3, 2023. For nearly a year the fixing had been set weaker than market expectations, which was read as the PBOC trying to curb the pace of the yuan's rise, but this month the fixings have increasingly leaned toward a stronger yuan, prompting the view that the central bank has eased its restraint. Goldman Sachs analysts noted that the strength of the fixing at a time ahead of the US-China summit is consistent with past practice, and that the room for the offshore spot rate to rise further has widened. OCBC, meanwhile, said caution is warranted in interpreting the PBOC's move as the start of a sustained cycle of yuan appreciation.
Goldman Sachs Group IncPBOC tolerates yuan appreciation ahead of US-China summit, with fixings leaning stronger and yuan at strongest since 2022
