China’s yuan strengthens to near 3-year high as US dollar uncertainty grows

South China Morning PostEN 1 min read 100% complete by Sylvia MaFebruary 25, 2026 at 09:15 AM

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The Chinese yuan has strengthened to a near three-year high against the US dollar, both in offshore trading and in the People's Bank of China's daily fixing rate. On Wednesday, the offshore yuan reached its strongest level since April 2023, while the PBOC set the midpoint rate at its strongest since May 2023. This appreciation is attributed to factors including easing trade tensions between China and the US, Federal Reserve rate cuts, and uncertainty surrounding US trade policy under President Trump. Despite the strengthening, analysts believe the PBOC is cautiously managing the yuan's appreciation, preferring a gradual increase in value. The US Supreme Court recently struck down Trump's global tariffs, adding to the uncertainty as his visit to Beijing approaches.