Offshore Yuan Posts Longest Winning Streak in a Decade

The offshore Chinese yuan recorded its longest streak of gains against the U.S. dollar in nearly a decade on Thursday, buoyed by growing optimism surrounding high-level talks between the United States and China in Beijing.

The offshore yuan rose as much as 0.1% to 6.7816 per dollar, its strongest level since February 2023, extending gains into an 11th consecutive trading session.

China’s onshore yuan also advanced for an eighth straight session, continuing its steady climb within the country’s tightly managed daily trading band of 2% above or below the official midpoint.

The rally accelerated after U.S. President Donald Trump and Chinese President Xi Jinping opened closely watched summit talks in Beijing. Trump expressed optimism about the future of bilateral relations, while Xi pledged further economic opening during meetings with visiting American business leaders.

Analysts said Xi’s renewed commitment to greater openness could strengthen the yuan’s long-term appeal as an international currency.

Elias Haddad, global head of markets strategy at Brown Brothers Harriman & Co., said the yuan remains underutilized globally relative to China’s economic size and trade influence.

“The international use of the yuan remains very low compared to China’s share of global GDP and world trade, suggesting significant room for expansion,” Haddad said.

He added that the firm continues to maintain a constructive long-term outlook on the offshore yuan, citing its potential evolution into a more widely used international currency alongside China’s broader domestic rebalancing efforts.

Meanwhile, Deutsche Bank also adopted a more bullish stance on the Chinese currency, raising its forecast for the yuan to 6.55 per dollar by the end of 2026 from a previous estimate of 6.7.

Economists led by Yi Xiong wrote in a research note that historical patterns and current data suggest stronger Chinese imports of raw materials are often followed by either a rebound in export demand, stronger domestic consumption, or both.

The yuan’s rally reflects improving investor sentiment toward China amid expectations that easing geopolitical tensions and deeper economic engagement with the United States could support capital inflows and reinforce the currency’s global standing.