China's yuan held near a four-year high against the US dollar on October 28, 2026, as investors awaited the Federal Reserve's policy decision and guidance on the outlook for interest rates.

China's yuan trades close to recent high

The onshore yuan was down 0.01% at 6.6675 per dollar at 0322 GMT, after trading between 6.6667 and 6.6701. It remained close to the four-year high of 6.6660 reached in the previous session.

Before trading began, the People's Bank of China set its daily midpoint at 6.7165 per dollar. The onshore currency is permitted to trade within 2% on either side of that reference rate.

The yuan had gained 0.6% against the dollar during October and 4.9% in 2026 to that point. The offshore yuan edged down about 0.02% to 6.666 per dollar in Asian trading.

Fed guidance and industrial profits in focus

Markets broadly expected the Fed to leave rates unchanged, but investors were watching for guidance on whether elevated energy prices and inflation risks could lead to further tightening. Analysts at MUFG said a hawkish Fed stance could put pressure on Asian currencies.

The yuan has also drawn support from Chinese manufacturing data. The National Bureau of Statistics' industrial profit release showed that profits at large industrial enterprises rose 14.4% year over year in September. For January through September, profits in computer, communications and other electronic equipment manufacturing rose 103.8% from a year earlier.

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