Yuan Strongest Since 2023 as Dollar Wobbles on Treasuries Report

The yuan surged to its strongest level since May 2023 after China was said to have asked banks to limit their holdings of US Treasuries.

Any shift away from US sovereign debt reinforces a broader global trend of diversification away from the dollar. Such a move might accelerate the repatriation of capital into Chinese assets, providing a fundamental tailwind for the yuan.