China Sets Yuan Fixing Stronger Than 7 for First Time Since 2023

China’s central bank set the yuan’s daily reference rate stronger than the closely watched 7-per-dollar level for the first time in over two years, in the latest sign of policymakers’ intention to allow further appreciation in the currency.

The People’s Bank of China set the so-called fixing at 6.9929 against the greenback on Friday, versus 7.0019 in the previous session. The last time the reference rate was below 7 per dollar was in May 2023.

A slightly stronger yuan has the benefit of helping trade tensions between Beijing and and its trading partners, while enhancing the appeal of Chinese assets. Authorities have boosted the reference rate, which defines a 2% trading band that limits yuan’s daily move, in seven of the past eight months.