China's yuan hovers near one-month high on Mideast ceasefire optimism
HONG KONG, June 25 (Reuters) - China's yuan edged higher against the U.S. dollar on Wednesday, nearing its strongest level in a month, as a truce between Israel and Iran continued to lift market sentiment.
The ceasefire brokered by U.S. President Donald Trump between Iran and Israel appeared to be holding, with both sides claiming victory on Tuesday after 12 days of war.
By 0331 GMT, the yuan CNY=CFXS held its ground at 7.1684 to the dollar, hovering near the strongest level since May 26.
The offshore yuan was little changed and traded at 7.1661 yuan per dollar CNH= in Asian trade.
The yuan has strengthened 0.4% against the dollar so far this month, and is up 1.8% this year against a broadly weaker greenback.
Prior to the market open, the People's Bank of China set the midpoint rate CNY=PBOC at 7.1668 per dollar, 41 pips firmer than a Reuters' estimate and near its strongest level since November 2024.
The yuan is allowed to trade within a 2% band on either side of the official midpoint each day. Based on Wednesday's fixing, it can weaken as far as 7.3101 per dollar.
"The midpoint seems to be guiding spot rates toward appreciation," said a trader at a Chinese bank, add that there was also significant buying interest below the current spot level, so the currency may not drop much.
Elsewhere, the Hong Kong dollar HKD=D3 slipped to 7.85 per U.S. dollar on Wednesday, hitting the weaker end of its trading band for a fourth consecutive session. Investors are watching closely if the Hong Kong Monetary Authority will drain liquidity from the banking system to support the currency.
The dollar's six-currency index =USD struggled to regain lost ground as investors clung to optimism over a fragile truce in the Middle East.
Key onshore vs offshore levels:
- Overnight dollar/yuan swap onshore -5.70 pips vs. offshore -5.70
- Three-month SHIBOR SHIBOR= 1.6 % vs. 3-month CNH HIBOR 1.8 %
LEVELS AT 0330 GMT
INSTRUMENT | CURRENT vs USD | UP/DOWN(-) VS. PREVIOUS CLOSE % | % CHANGE YR-TO-DATE | DAY'S HIGH | DAY'S LOW |
Spot yuan CNY=CFXS | 7.1684 | 0.05 | 1.83 | 7.1674 | 7.1728 |
Offshore yuan spot CNH=D3 | 7.1663 | -0.01 | 2.37 | 7.1618 | 7.171 |
Related Articles
Understanding Token Burning: Why Crypto Projects Destroy Their Own Coins
Token burning is the permanent removal of cryptocurrency from circulation, similar to stock buybacks in traditional finance. Tokens are sent to a “burn address” or “blackhole address” — wallets with no private key access — making them unrecoverable and unusable.
Bridgewater Associates Q2 2025 13F Analysis: Founder Ray Dalio’s Final Act
TradingKey - Bridgewater Associates, the world’s largest hedge fund and renowned for its macroeconomic analysis, continues to command market respect with its “risk parity” strategy and precise economic cycle timing.
U.S. July CPI Commentary: Obstacles Cleared, Where Will U.S. Stocks Go Next?
TradingKey - On 12 August 2025, the United States released its Consumer Price Index (CPI) data for July. In terms of headline inflation, the CPI rose by 2.7% year-on-year in the month, slightly lower than the expected 2.8%. However, core CPI climbed 3.1% year-on-year, edging past the projected 3.0%.
Ethereum Price Prediction: Will ETH Extend the Rally? What’s the Future Trend?
Ethereum's impressive 2025 rally has been largely fueled by inflows from spot ETFs and a surge in institutional holdings, signaling growing confidence in its role as a core asset in the crypto market. However, to officially confirm the start of a new bull cycle, ETH must break above the critical $4,
Bitcoin Price Forecast: Trends and Investment Outlook from 2025 to 2030
From $0.01 in 2009 to $120,000+ in 2025, Bitcoin has evolved from obscurity to a globally recognized financial asset. While institutions and governments increasingly embrace it, investors must remain vigilant against volatility, security risks, and scams.
