RMB Fixing Hits More Than Three-And-A-Half-Year High

The yuan's midpoint against the U.S. dollar was set at 6.7807 on Wednesday, up 22 pips from the previous trading day and the strongest since February 8, 2023, according to ETNet. The fixing was 640 pips weaker than market forecasts. The onshore yuan opened 9 pips higher at 6.7210, after closing at 6.7219 in the previous session. Market participants said a rebound in the yen has passively pressured the dollar lower, easing external pressure on the yuan and supporting the stronger fixing. They expect the spot yuan to continue to edge higher in a stable range. Investors are also watching Friday's nonfarm payrolls report, which will help shape expectations for the Federal Reserve's interest-rate path.