China's yuan posts strongest showing since 2022
The Chinese yuan strengthened against the US dollar, pushing past the key 7-per-dollar level for the first time since September 2022, as renewed weakness in the greenback followed political and trade-related developments involving the United States.
The yuan-dollar exchange rate fell to 6.9929, marking the Chinese currency’s strongest level in more than three years, News.Az reports, citing foreign media.
The move came after a decline in the US Dollar Index, which was linked to discussions surrounding Greenland and their impact on market sentiment.
The dollar came under additional pressure after Donald Trump threatened to impose tariffs on around eight European countries, tying the measures to their compliance with his proposed annexation of Greenland. Those remarks weighed on the US currency and contributed to the broader slide in the US Dollar Index.
The yuan had been weakening against the dollar since March 2022, a trend that intensified after the Federal Reserve began tightening monetary policy through a series of interest rate hikes in the aftermath of the COVID-19 pandemic.
As the Federal Reserve raised borrowing costs, the yuan-dollar exchange rate moved above the 7-per-dollar mark in September 2022. During the same month, the Chinese currency sank to its weakest level since the 2008 global financial crisis.
The latest move below the 7-per-dollar threshold signals a notable reversal, following years of sustained pressure on the yuan driven by global monetary tightening and shifting trade dynamics.
By Nijat Babayev
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