China's economy is rapidly recovering from the coronavirus epidemic, which is fueling investor optimism about its prospects.
The yuan jumped to its highest since 2018 amid investor optimism about the outlook for the Chinese economy, which is rapidly recovering from the COVID-19 epidemic. Bloomberg reported on Tuesday, November 17.
The dollar is worth 6.5538 yuan, down 0.5% from the dollar at the close of the previous session. The dollar has not dropped below 6.6 yuan since the summer of 2018.
The yuan's rise was also influenced by the victory of Democratic candidate Joe Biden in the US presidential election, as Democratic policies towards Beijing are believed to be less hostile, or at least more predictable.
In addition, higher than the US interest rates in the PRC are encouraging investors to invest in Chinese bonds, which also supports the yuan. The difference between the interest rates of Chinese and comparable in terms of US government securities is close to a record level.
вЂњChina is likely to outpace the world in economic growth in the next six months, and the interest rate advantage will continue, and the yuan will continue to strengthen,вЂќ Bloomberg Intelligence analyst Stephen Chiu said.
Finally, the yuan against the dollar is likely to rise in November for the sixth straight month, the longest rally since 2014. Since the end of May, the value of the yuan has increased by 9%, having recouped more than half of the decline recorded amid the trade war with the United States.
Recall that earlier China prepared the largest free trade agreement in the world. The total population of 15 countries that will sign the agreement is 2.2 billion people, and the total GDP is $26.2 trillion.