Chinese Yuan Strengthens as Trade Surplus Hits $105.43 Billion in May

China’s trade surplus surged to $105.43 billion, exceeding estimates and boosting the yuan amid strong exports and imports. The USD/CNH pair dipped near 6.7750 in early European trading Wednesday, pressured by a stronger Chinese yuan. China’s May trade surplus reached $105

China’s trade surplus surged to $105.43 billion, exceeding estimates and boosting the yuan amid strong exports and imports.

The USD/CNH pair dipped near 6.7750 in early European trading Wednesday, pressured by a stronger Chinese yuan. China’s May trade surplus reached $105.43 billion, surpassing the $92.1 billion forecast and April’s $84.82 billion.

Exports rose 19.4% year-on-year, beating the 15% estimate, while imports climbed 27.4%, above the 25% expectation. However, China’s May CPI held steady at 1.2%, missing the 1.3% forecast.

The US Dollar Index edged 0.12% lower ahead of US May CPI data, expected to show inflation rising to 4.2% from 3.9% in April.

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