The Chinese currency strengthened past the fundamentally unimportant, yet psychologically significant, mark of RMB 7 to the dollar this week as it continued its month-long rally on hopes of a trade truce between China and the US, reported Caixin.
The onshore RMB appreciated to RMB 6.9732 to the US dollar Thursday afternoon, according to Bloomberg data. The RMB has strengthened 2.9% against the greenback since hitting a recent weak point of 7.1789 per dollar on Sept. 3.
During trading on Tuesday, the currency broke through the 7-RMB-to-the-dollar mark for the first time since Aug. 5.
“The major driver of the yuan’s exchange rate is the progress of the China-US trade talks,” said Liu Jian, a finance researcher at Bank of Communications.