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China's yuan hits 15-month high against the dollar

Business

China's yuan just reached its strongest level since September 2024, trading at 7.0061 per US dollar—almost breaking that key "7" mark.
This matters because a stronger yuan can make Chinese stocks more attractive to global investors.

Why does this matter?

The surge is mostly thanks to big year-end conversions of corporate dollars into yuan (about $1.2 trillion), easing trade tensions with the US, and steady foreign money flowing into China.
Plus, recent US Federal Reserve rate cuts have made the dollar weaker overall.

What's next for the yuan?

Experts think the yuan could get even stronger next year if US interest rates stay low and foreign investors keep buying in.
Meanwhile, China's central bank is keeping a close eye to prevent wild swings in its value.