Onshore and offshore yuan both break above 6.7, hitting highest since Feb 2023
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On September 18, the Chinese yuan achieved a significant milestone as both onshore and offshore spot rates against the US dollar broke through the key 6.70 level during intraday trading. The offshore yuan reached an intraday high of 6.6933, while the onshore yuan hit 6.6964, marking their strongest levels since February 2023. Wang Qing, Chief Macro Analyst at Dongfang Jincheng, expects the yuan to maintain a stable yet slightly stronger trend in the short term. He noted that future movements will depend on changes in China's export growth and adjustments to monetary policies by major overseas economies, which could impact the US Dollar Index. Wang predicts the yuan will generally continue to move inversely to the US dollar with relatively limited volatility. He forecasts the core fluctuation range for the yuan against the US dollar to be between 6.7 and 6.9 by year-end, with the full-year trend potentially following a pattern of 'initial appreciation followed by stabilization.'
Source report
Jin10 Data, September 18 — The Chinese yuan achieved a significant milestone today, with both onshore and offshore spot rates against the US dollar breaking through the key psychological level of 6.70 during intraday trading.
Key Highlights
- Offshore yuan (CNH) reached an intraday high of 6.6933
- Onshore yuan (CNY) hit an intraday high of 6.6964
- Both levels mark the strongest since February 2023
Analyst Outlook
Wang Qing, Chief Macro Analyst at Dongfang Jincheng, offered the following insights on the yuan's trajectory for the remainder of the year:
- The yuan is expected to maintain a stable yet slightly stronger trend in the short term
- Future movements will depend on:
- Changes in China's export growth
- Adjustments to monetary policies by major overseas economies, which could impact the US Dollar Index
Trading Pattern Forecast
Wang noted that the yuan will generally continue to move inversely to the US dollar, with relatively limited volatility.
"We expect the core fluctuation range for the yuan against the US dollar to be between 6.7 and 6.9 by year-end. The full-year trend for the yuan may follow a pattern of 'initial appreciation followed by stabilization.' "
(Source: NBD)
Source
金十数据Eastern
Part of this Story
Chinese Yuan Breaks 6.70 Threshold Against US Dollar, Reaching Strongest Level Since February 2023