Yuan Hits 3-Year High Against the Us Dollar

The yuan, domestic currency of China, reached its highest level against the US dollar for the first time since 2018.

The yuan hits 3-year high against the US dollar. The value of the Chinese yuan domestically priced against dollars has peaked since 2018. USD/Yuan exchange rate was 6.4291 with a 0.5 percent depreciation with the US dollar, which depreciated after the employment data in the US was below expectations. With the decline in US Treasury bond yields, emerging market units rose, while the yuan also experienced a significant appreciation against the US dollar in April. With the Chinese economy recovering faster than its peers and signs of normalization in monetary policy, the yuan has been the second best performing currency in Asia since the beginning of the year. DBS Hong Kong Treasury Markets Director Tommy Ong said the following about the rise in the currency: “The yuan will continue to rise even if the US dollar does not weaken. The currency is supported by capital inflows and a large trade surplus. The Bank of China will try to correct the rate to slow gains but will not intervene directly ”