The Chinese currency has soared since the beginning of this week as markets reacted positively to Washington’s decision to hold off on further tariffs, with the yuan seeing its largest two-day rise since its revaluation in 2005.
The onshore renminbi, traded on China’s domestic markets, gained 1.8% across Monday and Tuesday, the Financial Times reports. It now sits at around 6.83 per dollar, stepping back from its close call with the psychologically significant Rmb 7 level.
In addition to the tariff truce announcement, the yuan has been buoyed by comments from Federal Reserve chair Jay Powell that interest rates were “just below” the target neutral rate. The remarks stung the greenback, sending it 1.4% lower from mid-November highs.