CNY Market Update
02 Jul 2026 • 00:29 GMT
The Chinese yuan (CNY) has been relatively steady against the US dollar, trading near 6.7915, close to its 3-month average. This comes amid a stable US dollar, which has paused its recent rally but remains supported due to persistent US inflation and expectations of Federal Reserve interest rate hikes. While the dollar's recent strength has slowed, it could still strengthen further with upcoming economic data.
Meanwhile, the yuan has shown signs of strength against several currencies. It reached its strongest level since May 2023 against the US dollar, supported by Chinese policy guidance and a weaker greenback. against the euro, the yuan is trading about 2.2% above its 3-month average, highlighting underlying dollar support but also resilience in Chinese currency.
Additionally, the yuan has touched 90-day highs against the Japanese yen and Australian dollar, indicating ongoing strength in these cross rates. Despite some stability, moderate fluctuations are expected as markets digest China's economic outlook and US monetary policy signals. Overall, the yuan remains resilient in the current environment, with moderate appreciation prospects against the dollar in the near term.