China's yuan has staged a sharp rebound after hitting an 18-year low earlier this year, climbing to around 7.13 per dollar in late August. The move is widely viewed as a political gesture designed to ease tensions with Washington ahead of sensitive trade discussions.
According to Reuters, the appreciation was driven partly by capital inflows and a record global trade surplus, but also by a deliberate choice from policymakers to present the yuan as a stabilizing tool rather than a weapon in the tariff dispute. Many analysts had expected Beijing to allow further weakness to offset U.S. duties; instead, the government appears to be signaling goodwill.
