China's Yuan Hits 3-1/2-Year High Ahead Of Xi-Trump Meeting
China's yuan climbed to a 3-1/2-year high against the dollar on Tuesday after the central bank set a firmer daily fixing for the 10th straight session, the longest streak since late 2023. Investors are awaiting a meeting between the leaders of the world's two largest economies later this week.
SHANGHAI, Sept 22 (Reuters) — China's yuan climbed to a 3-1/2-year high against the dollar on Tuesday after the central bank set a firmer daily fixing for the 10th straight session, the longest streak since late 2023, while investors awaited a meeting between the leaders of the world's two largest economies later this week. US Treasury Secretary Scott Bessent offered positive comments about the US-China trade relationship ahead of Chinese President Xi Jinping's state visit to the US from September 23 to 25 at the invitation of President Donald Trump.
While thorny issues like Taiwan may surface, the main focus of their September 24 meeting is whether the leaders will signal an extension to a trade truce struck last year that averted a major shock to the global economy. Senior US and Chinese officials will meet again in about two months in Shenzhen, China, to discuss artificial intelligence dangers and communications protocols in the event of AI safety incidents, Bessent said on Monday. 6989. The spot yuan is allowed to trade 2% either side of the fixed midpoint each day.
" Maybank analysts said in a note. 6969 as of 0302 GMT. 6965 per dollar. "The firmer fixing bias is notable given the broader USD/rates backdrop and reinforces the recent shift in fixing guidance towards allowing a somewhat firmer RMB," said Christopher Wong, FX strategist at OCBC Bank.
4% against the dollar this year, making it one of Asia's best-performing currencies, supported by resilient exports. With the yield gap between China and the United States hovering near a record high, some investors expect further yuan appreciation to be more gradual. "Beyond the meeting, wide US-China yield differentials and soft domestic fundamentals should still limit the pace of RMB appreciation," OCBC's Wong said. Levels At 0302 Gmt： INSTRUMENT CURRENT UP/DOWN(-) % CHANGE DAY'S HIGH DAY'S vs USD VS.
6967 yuan spot (Reporting by Shanghai Newsroom; Editing by Kim Coghill)