China’s renminbi climbed to a three‑year high against the dollar, with the People’s Bank of China fixing the daily rate at Rmb6.8467. The onshore currency traded as strong as Rmb6.795 per dollar, breaking the Rmb6.8 barrier for the first time since February 2023.

Analysts noted that Beijing set the fixing slightly weaker than expected, signalling a deliberate buffer against speculative pushes ahead of President Xi Jinping’s meeting with former U.S. President Donald Trump. The move reflects Beijing’s intent to keep the currency stable while tolerating modest appreciation.

The stronger renminbi comes amid a backdrop of rising consumer and producer price indices—CPI up 1.2% and PPI up 2.8% in April—hinting at a shift away from deflationary pressures that have weighed on China’s economy. A 20% undervaluation estimate by Goldman Sachs underscores the currency’s potential to continue appreciating.

For investors, the rally tightens trade‑tension dynamics and may recalibrate export competitiveness. The stronger renminbi could blunt China’s trade surplus, affecting global supply chains and currency markets.