Onshore and offshore yuan against the US dollar exchange rate hit a new high in over a year.

Today, both onshore and offshore Chinese Yuan strengthened against the US dollar once again. The offshore Chinese Yuan against the US dollar broke through 7.04, reaching as high as 7.03725 at one point during the trading day, the highest since October 4, 2024. The onshore Chinese Yuan against the US dollar reached a peak of 7.0417 during trading, the highest since October 8, 2024. Regarding the recent continuous increase in the value of the Chinese Yuan against the US dollar, Wang Qing, Chief Macro Analyst at Oriental Gold Trust, believes there are two main direct reasons. First, following the Federal Reserve's interest rate cut on December 11, the US dollar index continued to decline, breaking below 100, leading to the general appreciation of non-US currencies, including the Chinese Yuan. Second, approaching the end of the year, there has been an increase in corporate foreign exchange demand, driving the seasonal strengthening of the Chinese Yuan. After the continuous strengthening of the Chinese Yuan, the accumulated demand for foreign exchange from previous periods may accelerate its release. Wang Qing stated that in the short term, the Chinese Yuan is expected to continue to be relatively strong, with a focus on the trend of the US dollar, the adjustments of the central parity rate of the Chinese Yuan, as well as the strength and pace of domestic growth stabilization policies.