Onshore yuan breaks 6.66 per US dollar, hits nearly 4.5-year high
The onshore yuan strengthened past 6.66 per US dollar on 30 October, closing at 6.6557, its highest in nearly four and a half years. Traders cited AI-linked避险 sentiment, falling US dollar index and strong domestic forex settlement demand as drivers.
The onshore Chinese yuan strengthened past the 6.66 per US dollar threshold on 30 October, marking its 13th consecutive trading day of gains and reaching a new nearly four-and-a-half-year high, according to Hong Kong-based broadcaster RTHK.
The onshore yuan closed at 6.6557 per US dollar, up 64 pips from the previous day's close. The central parity rate, set by the People's Bank of China, also rose to 6.7138 per US dollar, a new nearly three-year-and-nine-month high, but remained 590 pips weaker than market forecasts.
A trader cited by RTHK said that concerns over artificial intelligence have triggered market risk aversion, pushing the US dollar index lower alongside falling US Treasury yields. Combined with strong domestic demand for foreign-exchange settlement, these factors have accelerated the yuan's appreciation.
Separately, data from the State Administration of Foreign Exchange showed that China's total foreign-exchange market turnover reached US$4.35 trillion in September, up more than 12 per cent month-on-month.