TechFlow news, January 2nd, this morning the offshore Chinese yuan broke through 6.97 against the US dollar, continuing the appreciation trend since the end of 2025. The market generally expects the yuan to officially return to the "6-era" in 2026.
Industry insiders analyze that the core logic supporting the yuan's strength is clear:
On one hand, under the pressure of high US debt, the Federal Reserve's policy is easier to loosen than to tighten, and the continuous weakening of the US dollar index has created external conditions for the yuan's appreciation;
On the other hand, the domestic economic fundamentals continue to improve, coupled with the release of policy dividends from the "15th Five-Year Plan," market confidence in yuan-denominated assets has significantly increased.
More notably, the approximately $900 billion in unhedged trade surplus accumulated over the past three years is showing signs of returning, providing strong support for the yuan exchange rate. (21st Century Business Herald)
