Yuan Hits Highest Level in 28 Months

[Image source=Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The Chinese yuan continued its strong rally, reaching its highest level in 28 months.

On the 10th, the People's Bank of China announced the yuan's midpoint exchange rate against the dollar at 6.5897 yuan, down 0.0226 yuan from the previous day's 6.6123 yuan.

This is the first time in 28 months since June 27, 2018, that the yuan has recorded a level in the 6.5 yuan range against the dollar.

A decline in the dollar-yuan exchange rate means that the yuan's value has relatively increased.

The yuan's strength is expected to continue for the time being due to China's economic recovery and the election of U.S. President Joe Biden.

Additionally, the interim results showing that the COVID-19 vaccine jointly developed by U.S. pharmaceutical company Pfizer and German BioNTech is over 90% effective are also analyzed to have influenced the yuan's strength on this day.

Meanwhile, in the offshore market in Hong Kong on the same day, the dollar-yuan exchange rate was 6.59663, also marking the lowest level in more than two years since June 2018.

This content was produced with the assistance of AI translation services.