China's Yuan Strengthens, Challenges US Dominance, Impacts Global Markets

• China's Yuan crosses the crucial 7-level against the US dollar, with its central bank signaling a gradual strengthening.
• This move challenges long-standing US accusations of currency manipulation and could weaken the dollar's global dominance.
• China aims to restore foreign investor confidence, boost its stock and capital markets, and leverage reduced geopolitical tensions.
• For India, a stronger Yuan offers opportunities for exporters, potential rupee stability, but could make Chinese imports costlier.
• The People's Bank of China will control the Yuan's strengthening to avoid sudden fluctuations and protect its exports.

Why It Matters: China's strategic currency move challenges US dominance and creates opportunities/challenges for India.