China's Offshore Yuan Hits Its Strongest Level Since January 2023 as the Dollar Stays Weak

China's offshore yuan strengthened to around 6.72 per dollar on Friday, August 21, 2026 (30 Mordad 1405), marking a third straight session of gains and its strongest level since January 2023. According to data source, the USD/CNY rate fell to 6.7195 on August 21, down 0.09 percent from the previous session; the yuan has strengthened 0.82 percent over the past month and 6.31 percent over the past twelve months.

According to the report, persistent US dollar weakness, driven by fading expectations of further Federal Reserve rate hikes and rising demand for longer dated US Treasuries after an expanded bond buyback program, has supported the yuan. China's central bank also kept its one year loan prime rate unchanged at 3 percent and its five year rate at 3.5 percent, for a fifteenth consecutive month.