Offshore Renminbi Rises Past 6.8, Hits New High in Over Three Years

The Chinese yuan's exchange rate against the US dollar continued its upward trend, with onshore and offshore prices both updating their highest levels since February 2023.

The offshore yuan against the US dollar broke through 6.8, setting a new high since February 2023. The onshore yuan against the US dollar rose by 116 points, reporting at 6.8033.

The midpoint rate of the yuan against the US dollar was reported at 6.8487, an increase of 75 basis points compared to the previous trading day, breaking the 6.85 threshold for the first time in over three years, marking the highest since March 24, 2023.

Since the end of 2025 when the yuan breached the 7.0 threshold, this round of appreciation has lasted for over half a year, with a cumulative increase of over 2000 basis points.

While the yuan continues to strengthen, the A-share market has also been rising in conjunction. Analysts believe that the appreciation of the yuan helps to enhance the appeal of yuan-denominated assets, improve the expectations for foreign capital inflow, and provide positive support to the A-share market.

Market observers point out that the weak performance of the US dollar index, the high level of trade surplus, and the sustained release of corporate exchange settlement demand are the three core factors supporting the strength of the yuan.

Meanwhile, the central bank has reduced the foreign exchange risk reserve ratio for forward foreign exchange sales from 20% to 0% in March this year, sending a policy signal to guard against one-sided exchange rate expectations and to guide two-way fluctuations.

The current market focus has turned to the defense of the 6.80 integer threshold, with several institutions predicting that the yuan against the US dollar will operate within the 6.70 to 7.00 range for the year.