China's onshore yuan ended the day at 6.8849 per dollar, posting its highest domestic session close in nearly a year.
TL;DR
China's onshore yuan closed at 6.8849 per dollar, its highest in nearly a year, driven by U.S. dollar weakness, central bank interventions, and trade policy shifts. The PBOC is managing gradual appreciation to curb volatility while geopolitical tensions ease.
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China's onshore yuan ended the day at 6.8849 per dollar, posting its highest domestic session close in nearly a year.
Chinese Yuan Reaches 32-Month High Amid Dollar Weakness and Policy Adjustments
The Chinese onshore yuan (CNY) closed at 6.8849 per U.S. dollar on February 24, 2026, marking its strongest domestic session close in nearly 32 months. This follows a broader trend of yuan appreciation against the dollar, driven by a combination of U.S. dollar weakness, strategic central bank interventions, and evolving trade policy dynamics.
Over the past six months, the CNY-to-USD exchange rate has fluctuated between 0.1387 and 0.1434 (equivalent to 7.16 and 6.97 yuan per dollar, respectively), with an average rate of 0.1406 (6.99 yuan per dollar). Recent gains have been amplified by the U.S. dollar's decline amid shifting trade policy expectations. The U.S. Supreme Court's rejection of President Donald Trump's broad tariffs prompted a recalibration of trade terms, including a temporary 15% rate, which has introduced uncertainty for global markets. Meanwhile, the People's Bank of China (PBOC) has signaled a measured approach to currency management, setting a daily midpoint rate of 6.9398 per dollar on February 3, 2026, to temper rapid appreciation.
Seasonal factors, including increased demand for yuan conversions ahead of the Lunar New Year, have also supported the currency's strength. However, the PBOC remains cautious about excessive volatility, as reflected in its recent weaker-than-expected midpoint fixings. Geopolitical developments, such as the U.S. pausing tech-security measures targeting China ahead of a planned April meeting between Presidents Trump and Xi Jinping, have further eased short-term tensions.
The yuan's resilience has implications for global markets, influencing commodity pricing, trade flows, and investor sentiment toward China-linked assets. A stronger yuan may reduce imported inflation but could also impact export competitiveness. Analysts note that the PBOC's balancing act—allowing gradual appreciation while curbing speculative bets—will remain critical in maintaining financial stability.
As mainland markets resume full operations following the Lunar New Year holiday, investors will closely monitor policy decisions and trade developments for further direction.