Yuan heads for longest weekly winning streak against dollar in 13 years

The Chinese yuan maintained a resilient trajectory in Hong Kong markets on February 6, 2026, as it remained on track for its longest weekly winning streak against the U.S. dollar in nearly 13 years due to robust export data and seasonal holiday demand. Despite a slightly soft tone during Friday's early Asian trade, the currency marked its eleventh consecutive week of appreciation, a feat not seen since early 2013. The People’s Bank of China supported the market environment by setting the midpoint rate at 6.9590 per dollar, while the spot yuan traded within its 2% allowable band. Financial analysts from ICBC noted that the yuan’s strength is being driven by favorable foreign exchange conversions and a generally weaker dollar index. While the broader market faced volatility—exemplified by a rout in precious metals like gold and silver and concerns over AI-related spending in equity markets—the yuan remained buoyed by internal economic momentum. This resilience comes despite the dollar index showing its own signs of a weekly recovery, as investors sought safety amid fluctuations in the U.S. stock and commodities sectors. However, market participants expect the pace of the yuan's appreciation to moderate in the coming days. Experts point to upcoming holiday market closures and a potential rise in U.S. dollar volatility as factors that could quiet trading activity. Furthermore, onshore dollar liquidity has shown signs of tightening, reaching its lowest levels since late 2023. Traders suggested this squeeze stems from domestic institutions moving capital offshore to manage margin calls triggered by recent instability in the global silver and gold markets.