China yuan nears highest level in 3.5 years at 6.7076 as exports surge and inflation beats forecasts

The Chinese yuan rose 0.04 percent in the immediate market to 6.7076 against the US dollar, remaining near its highest point in three and a half years. This level compares to the 6.7050 record set on Monday. The RMB also traded near 6.7052 in the external market. Domestic support came from August data showing the producer price index jumped 3.8 percent annually, surpassing the forecasted 3.6 percent and accelerating from July. The consumer price index also rose 0.8 percent compared to 0.5 percent in the previous month. In Europe, natural gas futures set fresh records, reaching their highest levels since January 2023. Gas prices increased by 8 percent since last Friday as supply fears grew following unprecedented fuel inventory drops and escalating tensions in the Middle East. Oil prices exceeded $100 per barrel after US sanctions targeted Iranian oil tankers. Tehran previously launched missiles at Jordan while warning vessels against entering the Strait of Hormuz, where 20 percent of Middle Eastern hydrocarbon exports historically flow.