Yuan Hits Four-Year High as PBOC Leans Against Rapid Gains Ahead of Central Bank Meetings

China's yuan climbed to a fresh four-year high against the dollar on Monday, extending its longest winning streak since May, as softer oil prices and U.S. Treasury yields weighed on the greenback ahead of key policy meetings at home and abroad. The People's Bank of China set the midpoint at 6.7162 per dollar, its strongest since February 2, 2023, but 471 pips weaker than a Reuters estimate of 6.6691 — the largest weak-side deviation since September 23. The onshore yuan touched 6.6682, its strongest since June 2022, before trading at 6.6691 as of 0252 GMT, up 0.02% on the day and 4.87% year-to-date. The offshore yuan last fetched 6.6688. Barclays said the PBOC continues to resist a faster pace of appreciation via weaker-than-expected fixings, while Goldman Sachs maintained its 12-month target of 6.40 per dollar, arguing consensus forecasts underestimate the scope for appreciation. Investors are watching the Fed, Bank of Japan and European Central Bank meetings this week, along with China's fifth plenum for policy clues.