Skip to content
Breaking
Carbon market initiative to open door to private capital for climate actionThe Real Cost of the U.S.-Canada Trade BreakdownThe Iran War at Six Months: A Region—and Its Relationship With the U.S.—TransformedMistrust poses hurdles for Malaysia’s Bersatu-PH tie-up in MelakaKennedy Center board’s Trump renaming rush questioned by US judgeUN condemns US labeling Palestine Action as extremist groupSyria’s president appoints ex-commander of Kurdish-led SDF as advisorHKEX posts record first-half profit as mainland tech listings fuel growthJosie Ho rejected billionaire heiress life for punk rock, indie filmmakingBudget deficit widens more than fivefold in July as spending surgesNearly 700 rogue AI agents coordinated in the Hugging Face attackPaperCut warns of unpatched flaw in print software exploited in zero-day attacksReward hacking let AI agents breach Hugging Face, OpenAI saysVietnam’s two-city financial hub lures US$21 billion in six monthsNext.js patches two critical flaws allowing unauthenticated remote code executionSingapore’s trade hub status faces scrutiny after White House flags transshipment riskEco Ardence to open 24-hour care hub at Setia Alam villasGaza truce at risk as Netanyahu rejects US planChinese automakers deepen East Java push ahead of Surabaya auto showWhat's New in Microsoft Security: August 2026Carbon market initiative to open door to private capital for climate actionThe Real Cost of the U.S.-Canada Trade BreakdownThe Iran War at Six Months: A Region—and Its Relationship With the U.S.—TransformedMistrust poses hurdles for Malaysia’s Bersatu-PH tie-up in MelakaKennedy Center board’s Trump renaming rush questioned by US judgeUN condemns US labeling Palestine Action as extremist groupSyria’s president appoints ex-commander of Kurdish-led SDF as advisorHKEX posts record first-half profit as mainland tech listings fuel growthJosie Ho rejected billionaire heiress life for punk rock, indie filmmakingBudget deficit widens more than fivefold in July as spending surgesNearly 700 rogue AI agents coordinated in the Hugging Face attackPaperCut warns of unpatched flaw in print software exploited in zero-day attacksReward hacking let AI agents breach Hugging Face, OpenAI saysVietnam’s two-city financial hub lures US$21 billion in six monthsNext.js patches two critical flaws allowing unauthenticated remote code executionSingapore’s trade hub status faces scrutiny after White House flags transshipment riskEco Ardence to open 24-hour care hub at Setia Alam villasGaza truce at risk as Netanyahu rejects US planChinese automakers deepen East Java push ahead of Surabaya auto showWhat's New in Microsoft Security: August 2026
Markets

China keeps yuan gains in check as PBOC resists sharp rise against weaker dollar

The Chinese yuan rose less than 1% against the US dollar even as the greenback fell more than 2% since late July, analysts said.

Source: South China Morning Post · August 27, 2026 at 11:31 AM · AI-assisted report

Single-source
China keeps yuan gains in check as PBOC resists sharp rise against weaker dollar
Image: scmp.com

KUALA LUMPUR, 27 AUGUST 2026 —

Listen to this article

DomainFork Audio · read aloud

Share

The Chinese yuan rose less than 1% against the US dollar even as the greenback fell more than 2% since late July, analysts said.

Market Impact

The People’s Bank of China (PBOC) resisted market pressure for sharper appreciation, allowing the currency to weaken in trade-weighted terms, according to a note by Gavekal Dragonomics on Wednesday. The US dollar index dropped after joint US-Japan intervention in late July and a US Treasury plan to expand long-end bond buy-backs, but the yuan’s daily fixing strengthened by only 46 pips on Aug 21, compared with 219 pips after a similar dollar slide last August.

On Thursday, the PBOC set the yuan’s midpoint at 6.7840 per dollar, slightly weaker than 6.7829 the day before and below the offshore rate of 6.721 at midday. He Wei, China economist at Gavekal, said the PBOC’s reaction “confirms the turn to a more cautious stance in 2026” and suggests the currency will move little in coming months.

Analysts said the move reflects Beijing’s preference for a stable currency with room for gradual appreciation. Cliff Zhao, chief economist at CCB International in Hong Kong, said the central bank’s caution was aimed at preventing sentiment overheating rather than rejecting yuan appreciation.

Xu Tianchen, senior economist at the Economist Intelligence Unit, said modest gains were likely for the rest of the year as fiscal strains in developed economies weighed on their currencies while stronger domestic policy support underpinned the yuan.

Related: People’s Bank of China (PBOC)

Reporting based on South China Morning Post. Figures and claims are subject to revision as the story develops. DomainFork publishes editorial context, not investment advice — see our editorial standards.