The yuan surpassed 7 per dollar for the first time since September 2024, with the offshore yuan rising 0.2% to 6.9964 per dollar. This move follows the People’s Bank of China strengthening its daily reference rate to the highest level since September 2024. The yuan is set for its best year in five years against the dollar due to a weak US currency, increased inflows into China’s stock market, and reduced geopolitical tensions. Despite its recent rally, the yuan is still considered undervalued by 25% relative to economic fundamentals, according to Goldman Sachs. Analysts predict the yuan will remain strong in the range of 6.95-7 per dollar in the first half of next year.

Read more at Yahoo Finance: China’s Yuan Climbs Past 7 Per Dollar as PBOC Caves in to Bulls