The United States and Japan executed their first coordinated currency intervention since 1998 between July 30-31, moving the yen from approximately 164 to 155 per dollar, a roughly 5% swing. The People’s Bank of China now faces upward pressure on the yuan, which traded around 6.748 CNY per USD as of August 12, having appreciated over 6% against the dollar over the past 12 months. While appreciation boosts purchasing power for commodity and technology imports, it threatens the competitiveness of low-margin export sectors such as electronics, textiles, and solar panels. Asset manager Eurizon forecasts the yuan could appreciate by up to 9% in 2026.
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