SynopsisChina’s yuan climbed to a 3-1/2-year high against the dollar after the central bank set a stronger daily fixing for the 10th straight session. Investors are watching the currency’s outlook ahead of the upcoming Xi-Trump meeting and trade discussions.

comYuan strengthens as markets await fresh signals on US-China trade. S.

President Donald Trump later this week. 7459 per dollar before the market opened, its strongest level since February 3, 2023.

6989. Read more: Global Market: Ligent Technologies jumps 19% in Hong Kong listing debutThe onshore yuan is allowed to trade within a 2% range on either side of the central bank’s daily midpoint.

6936 per dollar, its highest level since January 2023, before paring back some gains. 6969 per dollar as of 0302 GMT.

6965 per dollar. -China trade relations ahead of Xi’s state visit to the United States from September 23 to 25 at Trump’s invitation.

S. Treasury Secretary Scott Bessent has expressed optimism about the trade relationship between the two countries ahead of the meeting.

The September 24 talks are expected to focus on whether the leaders will signal an extension of a trade truce agreed last year that helped avert a major disruption to the global economy. Other sensitive issues, including Taiwan, could also feature in discussions.

S. and Chinese officials agreed to hold another meeting in Shenzhen, China, in about two months to discuss artificial intelligence risks and communication protocols for potential AI safety incidents.

4% against the dollar so far this year, making it one of Asia’s better-performing currencies. Its strength has been supported in part by resilient Chinese exports and a weaker dollar environment.

The central bank’s continued stronger midpoint settings have attracted attention from currency investors. The 10-session run is the longest since late 2023 and signals a recent shift toward allowing a firmer yuan.

However, the interest-rate differential between China and the United States remains wide and is close to a record level, which could limit the pace of further yuan appreciation. Analysts also expect currency markets to remain sensitive to developments from the upcoming Xi-Trump meeting, particularly any signals on tariffs, trade policy and the continuation of the existing truce.