SHANGHAI: China’s yuan inched higher against a softer dollar on Friday and looked set for the fifth straight weekly gain, its longest winning streak in more than three years.

The yuan was supported by stronger corporate interest in converting their foreign exchange receipts on the back of recent dollar weakness, but gains were capped by market caution ahead of Federal Reserve Chair Jerome Powell’s speech in Jackson Hole, Wyoming, later on Friday. Powell’ remarks are expected to offer more clues on the monetary policy trajectory in the world’s largest economy and affect global financial markets, traders said.

By 0300 GMT, the yuan was trading 0.07% higher at 7.1428 to the dollar. If it retains all the gains into the late night close, it would have strengthened 0.23% against the dollar for the week, booking its longest weekly winning streak since May 2021.

“Yuan depreciation pressure has been alleviated as we have seen a general weakening of the dollar over the last month or two,” said Lynn Song, chief economist for Greater China at ING.