China's yuan just broke a big barrier against the dollar
For the first time in nearly three years, China's central bank set the yuan at 6.99 per US dollar—finally dipping below that key "7" mark.
It's a sign Beijing feels more confident letting its currency get stronger, especially as the US dollar loses some steam.
Why does this matter?
Even amid trade tensions, China's trade surplus surpassed $1 trillion and growth is holding at 5%.
But here's the twist: experts like Goldman Sachs say the yuan is still undervalued by about 25%.
So, while things look strong on paper, there's room for the currency to rise.
What's next for China's money moves?
China's central bank is being careful—not letting things move too fast so exporters don't get hurt.
They appear to be maintaining a "moderately loose" policy to keep growth steady.
Basically, they want stability without any surprises.