Overview
- Offshore yuan briefly traded at 6.9960 and onshore rose to about 7.01 per dollar, the strongest levels since September 2024.
- The CFETS central parity was set at 7.0392 on Thursday, the firmest official fixing since September 2024.
- The People’s Bank of China said foreign‑exchange supply and demand are basically in equilibrium and pledged to stabilize expectations to prevent overshooting.
- Analysts point to a weaker US dollar, sustained trade surpluses and concentrated corporate FX settlement as drivers, with investor optimism rising even as smaller exporters worry about competitiveness.
- Traders reported major state-owned banks buying dollars near 7.006 in onshore dealings to moderate the pace of appreciation.