2026.10.0902:23:14UTC+00Offshore Yuan Rises as PBoC Defends Policy

The offshore yuan climbed to around 6.69 per dollar on Friday, after trading largely unchanged for two straight sessions, as China defended its exchange-rate stance during trade talks with the European Union. EU officials have increasingly highlighted exchange-rate distortions, contending that an undervalued yuan enhances the competitiveness of Chinese exporters and deepens the bloc’s trade deficit with China, which now exceeds €1 billion ($1.12 billion) per day. The People’s Bank of China countered that exchange-rate shifts alone cannot correct structural imbalances in the global economy, insisting that China’s export performance reflects rising industrial competitiveness rather than currency policy. These exchanges come as the yuan has appreciated against most major currencies this year, while the euro—pressured by weak European growth and France’s fiscal strains—has fallen more than 10% against the yuan from its January peak.