The Chinese yuan has strengthened significantly against the U.S. dollar, reaching its highest level since May 2023. The People's Bank of China (PBOC) has been adjusting the USD/CNY reference rate, setting it at 7.0531 on September 23, 7.0510 on September 24, and 7.0202 on September 25. This marks the strongest level for the yuan since May 2023. The offshore yuan also broke the 7.0 mark for the first time since May last year, briefly reaching 6.9952. The yuan's rally is attributed to a series of stimulus measures introduced by China, which have bolstered investor confidence. The yuan hit a 16-month high, and the PBOC raised the central parity rate by 308 pips to 7.0202 per USD. On September 26, the PBOC set the USD/CNY reference rate at 7.0354.