The People’s Bank of China (PBOC) fixed the daily reference rate for the yuan at 6.7146 per dollar on Nov 2, anchoring a period of currency strength that has seen the onshore yuan hit its firmest level against the U.S. dollar since mid-2022. The onshore currency reached a peak of 6.66 per dollar on Oct 30, its highest value since June 6, 2022, as the central bank has consistently maintained higher midpoint fixings throughout the month.
The rally, which is partly attributed to robust Chinese exports, coincides with significant shifts in the nation’s leadership. Reports indicate a purge of senior officials within the Central Military Commission, where only two of the seven members, including President Xi Jinping, remain following the removal of most top generals.