China's yuan hits four-year high against US dollar as Federal Reserve keeps rates steady

China's yuan reached a four-year high against the US dollar.

Market Factors

This currency rise was supported by the central bank's firm guidance and the Federal Reserve's choice to keep interest rates steady. The People's Bank of China kept managing this currency appreciation. Traders and analysts noted that the People's Bank of China has slowly made its daily yuan guidance stronger this year.

Context

Investors are now waiting for the European Central Bank to announce its policy decision to see where currency markets will move next. Central banks use interest rates and guidance to manage the value of their money compared to foreign currencies like the US dollar.