The offshore yuan held its gains around 6.93 per dollar, hovering near its highest level since May 2023, as improving outlooks for the currency bolstered sentiment. Major global investment banks have grown more constructive on the yuan after it broke through the key 7-per-dollar level late last year. The yuan rose about 4.5% against the dollar in 2025, supported by a softer greenback, shifting interest-rate expectations, and renewed confidence in China’s macroeconomic stabilization. Year-end forecasts from 13 banks now put the yuan at 6.91 per dollar, a notable upgrade from early December projections that had it staying above 7 until 2026. However, analysts expect any further appreciation to be gradual and carefully managed, as the PBOC has expressed unease over the yuan’s rapid gains. On the economic front, a private survey showed the composite PMI rose to a three-month high of 51.6 in January, as both manufacturing (50.3 vs 50.1) and services (52.3 vs 52) sectors continued to grow.