The Chinese yuan (CNY) rose to 7.0742 per US dollar in November, its strongest level since October 2024, after the White House extended the suspension of reciprocal tariffs on Chinese imports until November 2026. Market focus is now turning to next year, with multiple meetings planned between Presidents Trump and Xi potentially easing bilateral tensions, notes Philip Wei, chief FX strategist at DBS.
The People’s Bank of China (PBoC) is guiding USD/CNY to the lowest central parity level since mid-October
“The Chinese yuan appreciated 0.7% to 7.0742 per US dollar in November, its best level since October 2024. Following the White House’s decision to maintain a suspension of reciprocal tariffs on Chinese imports until November 2026, the People’s Bank of China directed the central parity rate of the US dollar against the Chinese yuan to 7.0789, its lowest level since mid-October 2024.”
“Although US-China relations will remain tense, they may become less confrontational in 2026. US President Donald Trump is scheduled to visit China in April 2026, and Chinese President Xi Jinping is scheduled to make a state visit to the US later in 2026. The two leaders are also likely to meet again at the APEC summit hosted by Beijing and the G20 meeting hosted by Washington.”
