RMB Hits More Than Four-Year High Against Dollar

The onshore yuan closed at 6.7079 per dollar, up 29 pips from the previous 4:30 PM close and its strongest level since July 11, 2022, according to ETNet. It traded between 6.7067 and 6.7099 during the session. The offshore yuan was up 6 pips at 6.7062. The daily midpoint was set at 6.7769, up 35 pips from the previous trading day and its highest since February 8, 2023, but about 730 pips weaker than market expectations. Market participants said a firmer yen and a softer dollar supported the yuan, while elevated oil prices and expectations for a September Federal Reserve rate hike could limit further dollar weakness. A foreign bank trader said yuan volatility remained low and the current trend was likely to continue until Thursday's U.S. inflation data.