(Dec 30): The yuan strengthened beyond the key seven-per-dollar level in the more tightly controlled onshore market for the first time since 2023, signalling China’s comfort with further currency appreciation. The currency rose as much as 0.1% to 6.9960 in local trading on Tuesday (Dec 30), after the People’s Bank of China set a weaker daily reference rate. The move came after the offshore yuan breached the closely watched seven level in late December. “There could be more appreciation ahead for the yuan, supported by foreign capital inflow, expectation of growth recovery and tech optimism,” said Wee Khoon Chong, a market strategist at BNY. “There are good reasons why PBOC will be happy with a slightly stronger yuan as long as the movement is not drastic.”

Source: The Edge Markets December 30, 2025 05:53 UTC