{"id":431888,"date":"2026-01-23T09:27:10","date_gmt":"2026-01-23T09:27:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/431888\/"},"modified":"2026-01-23T09:27:10","modified_gmt":"2026-01-23T09:27:10","slug":"china-sets-yuan-at-strongest-rate-in-years-as-greenland-furore-affects-us-dollar","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/431888\/","title":{"rendered":"China sets yuan at strongest rate in years as Greenland furore affects US dollar"},"content":{"rendered":"<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">China\u2019s central bank has strengthened the yuan\u2019s daily fixing rate to break through the psychologically important level of 7 per US dollar for the first time since May 2023, as the American currency weakens amid concerns over recent US attempts to gain control of Greenland.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">The People\u2019s Bank of China set the yuan\u2019s midpoint rate \u2013 also known as the daily fixing rate \u2013 at 6.9929 to the US dollar on Friday, after weeks of keeping the benchmark just on the weaker side of the 7 mark.<\/p>\n<p>The move came as market confidence in US dollar assets weakened following US President Donald Trump\u2019s <a target=\"_self\" class=\"e1yy41x40 ef9u0v01 css-1ankfgb ecgc78b0\" href=\"https:\/\/www.scmp.com\/news\/china\/diplomacy\/article\/3340459\/punch-back-or-punching-bag-eu-weighs-response-trumps-greenland-tariff-threat?module=inline&amp;pgtype=article\" title=\"\" data-qa=\"BaseLink-renderAnchor-StyledAnchor\" rel=\"nofollow noopener\">threats to raise tariffs<\/a> on eight European countries unless they allowed America to take control of Greenland, a semi-autonomous Danish territory.Though Trump later <a target=\"_self\" class=\"e1yy41x40 ef9u0v01 css-1ankfgb ecgc78b0\" href=\"https:\/\/www.scmp.com\/news\/china\/diplomacy\/article\/3340715\/greenland-meltdown-what-does-trumps-quest-mean-global-order-and-china?module=inline&amp;pgtype=article\" title=\"\" data-qa=\"BaseLink-renderAnchor-StyledAnchor\" rel=\"nofollow noopener\">walked back this proposal<\/a> at the World Economic Forum in Davos, Switzerland, some European institutional investors have announced plans to sell off \u2013 or have already begun reducing \u2013 their US Treasury holdings, sparking discussion about Europe\u2019s potential \u201cweaponisation\u201d of its holdings of US dollar assets.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">The US dollar index had slumped to about 98.27 from 99.45 earlier this week, before edging up to 98.37 late on Friday morning.<\/p>\n<p>Meanwhile, the yuan <a target=\"_self\" class=\"e1yy41x40 ef9u0v01 css-1ankfgb ecgc78b0\" href=\"https:\/\/www.scmp.com\/economy\/china-economy\/article\/3339358\/chinas-yuan-strengthen-685-us-dollar-first-quarter-2026-morgan-stanley?module=inline&amp;pgtype=article\" title=\"\" data-qa=\"BaseLink-renderAnchor-StyledAnchor\" rel=\"nofollow noopener\">has been steadily strengthening<\/a> in recent months. The fixing rate on Friday was still weaker than the value of the offshore yuan, which was trading at around 6.96 to the US dollar as of late Friday morning.<\/p>\n","protected":false},"excerpt":{"rendered":"China\u2019s central bank has strengthened the yuan\u2019s daily fixing rate to break through the psychologically important level of&hellip;\n","protected":false},"author":2,"featured_media":431889,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[226028,64,63,8972,99,512,37946,226026,223513,2490,2057,69511,10835,226027,106888,51581,5300,10653],"class_list":["post-431888","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-american-currency","tag-au","tag-australia","tag-bank-of-america","tag-business","tag-china","tag-chinas-central-bank","tag-chinese-tourist-outflows","tag-davos","tag-donald-trump","tag-europe","tag-european-countries","tag-greenland","tag-lunar-new-year-holiday","tag-pan-gongsheng","tag-peoples-bank-of-china","tag-us-dollar","tag-us-treasury"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/431888","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=431888"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/431888\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/431889"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=431888"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=431888"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=431888"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}