Over the
past four months, the yuan strengthened more than 9% against a weakening U.S.
dollar, reaching around 0.1488 on charts and offshore rates near 6.72 per
dollar.
The People's Bank of China has guided this
rise with careful fixings to limit sharp moves, reflecting a measured approach
amid broader greenback pressure.
Observers note the managed path, with one
quipping about 'the invisible hand of the market… with a very visible Chinese
wrist attached to it.' A stronger yuan helps with imports and dollar earnings
but squeezes exporters, and recent PBOC signals hint at a slower pace ahead.