China’s yuan strengthened to 6.6957 per dollar, its strongest level since January 16, 2023, as the People’s Bank of China (PBOC) appeared to ease efforts to restrain currency appreciation before Thursday’s summit between President Donald Trump and Chinese President Xi Jinping. The offshore yuan rose about 0.03% in Asian trading. The PBOC set the daily midpoint at 6.7487 per dollar, the strongest since February 3, 2023, though 536 pips weaker than a Reuters estimate. The yuan can trade 2% on either side of the midpoint each day. Goldman Sachs said the stronger fixing ahead of the summit could leave more room for offshore yuan gains and support a stable trading relationship. OCBC cautioned that the move may reflect policy-managed stability around the summit rather than the start of a sustained appreciation cycle, given the wide US-China yield gap and soft domestic fundamentals. Talks between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng concluded in New York on Sunday, ahead of discussions expected to cover AI, trade, supply chains and Middle East tensions. Analysts do not expect a major policy breakthrough.