Yuan Reaches Multi-Year High Ahead of Trump-Xi Summit

The Chinese yuan strengthened to its strongest level in more than three and a half years as markets prepared for the upcoming meeting between US President Donald Trump and Chinese President Xi Jinping. The onshore yuan recently traded around 6.6950 per dollar, while the offshore yuan was near 6.6946. The People's Bank of China also set its daily midpoint at 6.7487, the strongest official fixing since February 2023. The stronger fixing suggests the PBOC has become less resistant to gradual yuan appreciation. For much of the previous year, the central bank had maintained daily guidance that was weaker than market expectations. The currency move comes ahead of the September 23-25 Trump-Xi summit in Washington. Trade relations, artificial intelligence, supply chains and geopolitical issues are expected to be among the areas under discussion. However, analysts caution that the recent yuan strength does not necessarily represent a permanent change in policy. The wide US-China yield gap and still-soft Chinese domestic fundamentals remain important constraints. MarketMindFX View: USD/CNY is testing the 6.70 region after the yuan's multi-year advance. The summit creates a near-term event risk for the pair, while PBOC fixing decisions will remain an important daily signal. Key Levels: USD/CNY Support: 6.6800, 6.6500 USD/CNY Resistance: 6.7500, 6.8000 Source: Reuters, September 21-22, 2026. MarketMindFX analysis.