CNY hits best level since October 2024 on tariff suspension extension – DBS

The Chinese Yuan (CNY) appreciated to 7.0742 per US Dollar (USD) in November, its strongest level since October 2024, after the White House extended the suspension of reciprocal tariffs on Chinese imports until November 2026. Market focus now turns to next year, with multiple planned meetings between Presidents Trump and Xi potentially easing bilateral tensions, DBS' Senior FX Strategist Philip Wee notes.

PBoC guides USD/CNY to lowest central parity since mid-October

"CNY appreciated 0.7% 7.0742 per USD in November, its best level since October 2024. Following the White House’s decision to maintain the suspension of reciprocal tariffs on Chinese imports until November 2026, the People’s Bank of China guided the USD/CNY central parity rate to 7.0789, its lowest since mid-October 2024."

"Although US-China relations will remain tense, they may become less confrontational in 2026. US President Donald Trump is scheduled to visit China in April 2026, with Chinese President Xi Jinping making a state visit to the US later in 2026. The two leaders are also likely to meet again at the APEC Summit hosted by Beijing and the G20 meeting hosted by Washington."