Chinese yuan hits highest level against dollar in 16 months due to stimulus policies, US Fed rate cut: experts

The offshore Chinese currency yuan briefly rallied past the 7.0 per dollar milestone for the first time in 16 months on Wednesday, as investors digested China's stimulus measures to stabilize growth and the recent U.S. Fed rate cut kept the dollar on the back-foot.

China's central bank governor Pan Gongsheng Tuesday said that the country will cut the reserve requirement ratio (RRR) by 0.5 percentage point in the near future, providing about 1 trillion yuan (about 142.30 billion U.S. dollars) in long-term liquidity to the financial market.

Depending on the liquidity situation in the market, the RRR may be further lowered by 0.25 to 0.5 percentage point within the year, Pan told a press conference in Beijing.

Meanwhile, the U.S. Federal Reserve announced last week that it will slash the target range for the federal funds rate by 50 basis points, marking the first rate cut since March 2020 and signaling the start of a monetary policy easing cycle.

"On the one hand, as U.S. Federal Reserve kicked off a monetary policy easing cycle, the interest rate difference between the Chinese and U.S. currencies narrowed. On the other, the resilience of China's foreign trade and its high trade surplus have helped stabilize the Chinese yuan exchange rate. The recent introduction of a host of policies to stabilize growth has also significantly boosted market confidence," said Wen Bin, chief economist at the Beijing-based China Minsheng Bank.

Recently, the supply and demand of the foreign exchange market have become more balanced. Data released by the State Administration of Foreign Exchange showed that in August, the cross-border income and expenditure volume of enterprises, individuals and other non-bank sectors has changed from a deficit previously to a surplus of 15.3 billion U.S. dollars.

"The appeal of Chinese yuan assets has increased dramatically, attracting the inflow of overseas capital, and further promoting steady performance and gradual improvement of the Chinese yuan exchange rate. We have every reason to believe that with the continued support of policies and the fundamentals of the economy, the Chinese yuan exchange rate can stay in a balanced range and perform well," said Tian Lihui, director of the Institute of Finance and Development at the Nankai University in north China's Tianjin Municipality.

Chinese yuan hits highest level against dollar in 16 months due to stimulus policies, US Fed rate cut: experts

Chinese yuan hits highest level against dollar in 16 months due to stimulus policies, US Fed rate cut: experts

As Kenyan marathon runner Sabastian Sawe shattered the two-hour barrier at the 2026 London Marathon on Sunday, Barnaba Korir, Youth Development Director at Athletics Kenya, hailed his historic achievement as a landmark moment for the nation and resounding proof that no human is limited.

Taking up the ultimate marathon challenge that had long eluded even the legendary runner Eliud Kipchoge, who famously finished the world's first sub-two-hour marathon distance under specially designed, non-race conditions with support, Sawe became the first person to break the two-hour mark in a sanctioned marathon, clocking 1:59:30 at this year's London Marathon.

Speaking in an exclusive interview with China Global Television Network (CGTN), Korir, a former athlete now devoted to sports development in Kenya, called the day "a historic moment" for his country.

"This is really a historic moment for Athletics Kenya. Sebastian Sawe breaking the two-hour barrier for the first time on a scale that we were looking for with Kipchoge. We are very excited about this performance and Athletics Kenya and Kenya as a whole is proud of what he has done today in London," he said.

Beyond the race itself, Sawe's feat has once again demonstrated to the world that the human spirit yields to no limits, he added.

"This was a big surprise we did not expect. I watched the race and at first I thought maybe they were not going to make it, but eventually he did. As Eliud Kipchoge said before, that no human is limited. Yes, it has been done, and we believe that actually when you give all the support that is necessary, the work that they have done, yes, no human is limited, and Kenya has shown that it can be done," he said.

Sawe's sub-2 hour marathon record proves no human is limited: Kenyan official