USD/CNY rises as silver volatility hits amid China export controls

USD/CNY strengthened to 7.0331 as set by the PBOC, reflecting ongoing yuan weakness amid geopolitical tensions and commodity market volatility. Silver prices hit record highs before experiencing a dramatic reversal, driven by Elon Musk's comments on supply risks and China's export restrictions on critical materials. The precious metal's wild swings underscore market uncertainty as China conducts military drills around Taiwan, simulating a blockade scenario. Meanwhile, the Bank of Japan signaled its intention to continue rate hikes, suggesting policy remains far from neutral despite recent tightening measures. The combination of China's export controls, regional military tensions, and diverging central bank policies is creating significant volatility across Asian FX markets. Traders should monitor the 7.05 resistance level on USD/CNY for potential breakouts, while safe-haven flows may continue supporting the yen against regional currencies.