On Wednesday afternoon, the offshore yuan traded at 6.867 per US dollar, its strongest level since April 2023.
The same day, the People’s Bank of China set the yuan’s midpoint rate – also known as the daily fixing – at 6.9321 per US dollar, also the strongest since May 2023.
The currency has appreciated steadily against the US dollar in recent months, supported by easing trade tensions between China and the United States, the Federal Reserve’s rate cuts and policy volatility under US President Donald Trump.
Uncertainty over Washington’s trade policy has shown no sign of abating after the US Supreme Court on Friday struck down Trump’s sweeping global tariffs imposed last year. The ruling came just as the White House confirmed his visit to Beijing would take place from March 31 to April 2.
While the yuan’s fixing has strengthened in recent months, it has been set slightly weaker than offshore levels over the past few weeks. Analysts widely believe the PBOC may prefer a firmer currency but remains cautious about allowing too sharp an appreciation.