Yuan Climbs Below 7 Per Dollar for First Time Since 2023

U.S. rate cuts reduced the interest-rate edge that had supported the dollar.

Overview

The Shanghai foreign-exchange market closed on December 30 at 1 USD = 6.9901 CNY, a 0.28% rise in the yuan from the prior day.
The move returns the exchange rate to the 6 range for the first time since May 2023, a span of two years and seven months.
Market sources attributed the advance to increased yuan buying tied to a widening Chinese trade surplus as trade frictions eased.
Participants also cited three consecutive U.S. rate cuts that narrowed the U.S.-China interest-rate differential, accelerating yuan gains.
In April the yuan had weakened to about 7.35 per dollar after the Trump administration raised tariffs on China, then recovered through the year.