Yuan Breaches ¥7 Threshold Amid Dollar Weakness, Crypto Markets Watch
The yuan crossed the psychologically significant ¥7 per dollar level for the first time since September 2024, fueled by a combination of PBOC policy adjustments and broad dollar weakness. This 3.8% annual gain creates ripple effects across asset classes, with cryptocurrency traders monitoring potential capital flow shifts between traditional and digital markets.
Chinese banks were observed buying dollars near the 7.006 level during thin holiday trading, while offshore liquidity remained constrained. The move coincides with Goldman Sachs' assessment that the yuan remains 25% undervalued against fundamentals—a disparity that could incentivize capital seeking higher-yielding alternatives like crypto assets.