Skip to content

Yuan Hits Three-Year High Amid Supportive Policy, Risk-On Buying

  • Chinese currency supported by strong exports, capital inflows
  • Receding concerns over omicron are fueling risk-on sentiment
Hong Kong Dollar, Chinese Yuan and US Dollar Banknotes As Currency Peg Intervention From HKMA Continues Into Third Day
Photographer: Paul Yeung/Bloomberg
Updated on

China’s yuan advanced to the strongest level since May 2018 amid bets that monetary stimulus will sustain the nation’s growth and the new Covid variant will have a limited impact on the global recovery.

The onshore yuan gained as much as 0.3% to 6.3451 per dollar, breaching a year-to-date high reached in May. The move came as optimism that omicron will prove a manageable risk for the global economy damped demand for the dollar as a haven. Traders also became more confident over China’s growth after the central bank announced broad monetary easing this week.