Analysis: How Will the Yuan Perform in 2025
Donald Trump’s tariff policy is the key uncertainty when weighing up the yuan’s stability
The yuan ended 2024 with fewer fluctuations, though it faced increasing pressure from the strengthening U.S. dollar. What factors should we watch for the currency’s performance in the coming year?
On Tuesday, the final trading day of 2024, the onshore yuan closed at 7.2988 against the U.S. dollar, weakening from around 7.09 at the beginning of the year. In the first half, the yuan gradually depreciated to 7.26 as the Federal Reserve delayed its interest rate cuts. Following the Fed’s rate cut in September, the yuan briefly rebounded to around 7.02, but weakened again in November, falling from 7.11 to 7.29, nearing the 7.3 threshold for the first time in nearly a year.
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