The U.S. dollar fell to 6.66 yuan, with the yuan reaching its strongest level in nearly four years.

The main drivers are strong Chinese exports and companies converting foreign currency into yuan, combined with weakness in the U.S. dollar itself. The central bank manages the daily fixing, keeping the pace of appreciation in check, so this is not a one-way surge.💹

The U.S. dollar could rebound in the short term, depending on the Fed and export data. But in the medium term, it will likely trade in a range of 6.6–6.8, with a sharp, one-way move unlikely.

For crypto, a weaker dollar is generally a macro tailwind for risk assets. But for users in China, a stronger yuan makes holding USDT less attractive, and local OTC markets may see discounts. The impact is limited, though—crypto is driven more by global liquidity and the Fed.
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