The China yuan rose to a four-year high against the US dollar on October 29, 2026, a day after the Federal Reserve held interest rates steady. The onshore currency reached 6.6620 per dollar, its strongest level since June 7, 2022.

Key Takeaways

  • The onshore yuan traded at 6.6621 per dollar at 0235 GMT after reaching its session high.
  • China’s central bank set its daily midpoint at the strongest level since February 2023.

China yuan strengthens in onshore trading

The onshore yuan has gained around 5% against the dollar so far in 2026. The offshore yuan traded at 6.6601 per dollar, up about 0.03% in Asian trading.

Before the market opened, the People’s Bank of China set the yuan’s daily midpoint at 6.7147 per dollar. The onshore spot rate is permitted to trade within 2% on either side of that reference rate.

Fed decision and currency guidance

In its October 28 policy statement, the Federal Reserve maintained its federal funds target range at 3.75% to 4% and said inflation remained elevated. The yuan’s subsequent movement does not, by itself, establish that the Fed decision caused the gain.

Maybank analysts said China’s central bank was allowing the yuan’s broader appreciation to continue while limiting the speed of the dollar’s decline against the Chinese currency.

Next milestone

Currency traders were also watching the European Central Bank’s policy decision due later on October 29.

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