China's yuan hits 4-year high as dollar weakens

Key facts

• China's yuan reached a four-year high against the dollar.
• The onshore yuan hit a high of 6.6682 per dollar.
• The PBoC set its daily midpoint rate at 6.7162, its strongest since February 2, 2023.

China's yuan strengthened to a fresh four-year high against the dollar on Monday, extending its longest winning streak since May. The move was driven by softer oil prices and lower US Treasury yields, which weighed on the greenback. Investors are also looking ahead to key policy meetings from the US Federal Reserve, Bank of Japan, and European Central Bank, as well as China's upcoming fifth plenum for policy clues. The People's Bank of China set its daily midpoint rate at 6.7162 per dollar, its strongest level since February 2, 2023, though traders noted the central bank is managing the pace of appreciation.