The offshore yuan strengthened to around 6.83 per dollar on Thursday, extending its rally to a fourth straight session and reaching a new high since April 2023, as the greenback remained on the back foot. The US dollar stayed under pressure amid lingering uncertainty over Washington’s tariff policies, which has weighed on confidence in the world’s primary reserve currency. Adding to the cautious market mood, US and Iranian negotiators were set to meet in Geneva later in the day for another round of nuclear talks, an event closely watched by global investors. The yuan’s advance came despite a markedly weaker-than-expected official fixing, seen as an effort to temper the currency’s rapid appreciation. The People’s Bank of China set the midpoint rate at 6.9228 per dollar, 623 pips weaker than Reuters’ estimate and the largest deviation on record. Investors are now turning their attention to next week’s PMI data, which could provide insights into the strength of China’s economic health.
