The offshore yuan appreciated to around 7 per dollar on Friday, extending gains for the third consecutive session and marking its strongest level in over fifteen months, as investors responded to signs of measured policy guidance from authorities. In its latest action, China established the yuan’s daily reference rate below market expectations by a record margin, reflecting the People’s Bank of China’s deliberate strategy of promoting a gradual and controlled appreciation. The Central Bank’s policy approach is intended to bolster exporters, regulate capital flows, and maintain overall market stability. Meanwhile, investors are closely monitoring the conclusion of the National People’s Congress Standing Committee meeting for any indications of further policy support. Looking ahead, CICC reports indicate that the currency is likely to maintain relative stability in 2026, balancing objectives such as domestic growth, external payment stability, and the promotion of its international use.