Hong Kong, 14 July 2026 – The Chinese yuan remains attractively valued against the euro even after its recent appreciation, as investors reassess the currency’s position against a backdrop of shifting trade flows, diverging monetary policy expectations and improving confidence in China’s external accounts.

The yuan has strengthened against major currencies in 2026, supported by a softer US dollar, resilient export performance and signs that authorities remain comfortable with a more stable currency path. Against the euro, the move has been notable because Europe’s currency has also benefited from expectations of firmer policy conditions and improved investor demand for non-dollar assets.

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Author

Rebecca Hsu

Rebecca Hsu is a Senior Economist and Lead Analyst for The Ledger Asia, focusing on the rapidly evolving financial landscapes of East and Southeast Asia. With a background in sovereign risk assessment and emerging market trends, Rebecca provides sharp commentary on trade dynamics, monetary policy, and the digital economy's impact on regional growth.

Formerly a strategic advisor for major financial institutions in Hong Kong, she excels at translating complex macroeconomic shifts into actionable insights for investors and policymakers. Her work at The Ledger Asia centers on China’s economic transition and the burgeoning manufacturing hubs of ASEAN, ensuring readers stay ahead of Asia’s shifting financial tides.