The improvement in economic fundamentals provides support for the strengthening of the Chinese yuan.

Last week, the Chinese yuan rebounded strongly against the US dollar, reaching new highs in both onshore and offshore markets for the first time in several months. In September, the yuan has seen some pullback against the dollar, but overall it remains higher than the exchange rate before the appreciation last week, demonstrating the resilience of the yuan exchange rate. There are multiple factors contributing to the appreciation of the yuan. Analysts believe that the steady improvement of the Chinese economy is the fundamental support for the strengthening of the yuan. Looking ahead, the yuan still has room for appreciation, and factors such as policy guidance, the trend of foreign exchange reserves, and changes in overseas monetary policies will be key factors affecting its future trend.