Offshore Yuan Hits Over 1-Year High

2025-12-03 04:04 By Czyrill Jean Coloma 1 min. read

The offshore yuan strengthened past 7.06 per dollar, hitting its highest level since October 2024, supported by a strong central-bank fixing and improving sentiment toward the currency.

The People’s Bank of China set the daily midpoint at 7.0754 per dollar, its firmest level since mid-October 2024, reflecting the central bank’s commitment to maintaining currency stability.

Adding to yuan's appreciation, several investment institutions expect the yuan to strengthen further next year, potentially pushing the currency past the psychologically significant 7-per-dollar threshold for the first time since 2023.

Externally, the yuan found support from a weakening US dollar amid rising expectations of an upcoming Federal Reserve rate cut.

On the economic front, a private survey showed China’s Composite PMI easing to a four-month low of 51.2 in November.

The services sector slowed to a five-month low of 52.1, while the manufacturing gauge slipped to 49.9, its weakest reading in four months.



News Stream
Offshore Yuan Steady on PBOC Hold
The offshore yuan steadied at 6.80 per dollar on Thursday, following gains from the previous session after the People's Bank of China left its benchmark lending rates unchanged. The PBoC held the one-year loan prime rate at 3% and the five-year LPR at 3.5% for a twelfth straight month in May, highlighting policymakers’ cautious stance amid heightened geopolitical tensions in the Middle East. The decision came despite signs of slowing domestic momentum, as industrial output slowed to its lowest level since July 2023, while retail sales eased to its weakest level since December 2022. Moreover, both consumer and producer inflation accelerated, driven largely by higher energy prices and ongoing supply-chain disruptions linked to the conflict. Meanwhile, Chinese President Xi Jinping is reportedly set to visit North Korea as early as next week, marking his first trip there in seven years and signaling warmer ties after the resumption of cross-border rail and air services.
2026-05-20
Offshore Yuan Steady
The offshore yuan steadied around 6.80 per dollar on Tuesday, following gains in the previous session as weak economic data boosted expectations of policy stimulus. In April 2026, new home prices across 70 major cities saw their sharpest decline since May 2025, while industrial output slowed to its weakest pace since July 2023. Retail sales growth also rose just 0.2% year-on-year, the weakest since December 2022. Moreover, China’s fixed-asset investment fell 1.6% year-on-year in the January–April period. Meanwhile, the surveyed urban unemployment rate edged down to a three-month low of 5.2% in April. On the monetary policy front, investors await the one-year and five-year loan prime rates due Wednesday, with markets expecting them to remain unchanged at 3% and 3.5%, respectively. Attention also turns to the Communist Party’s Politburo meeting in July, seen as a key moment for reassessing growth targets and policy direction.
2026-05-18
Offshore Yuan Retreats as Trump-Xi Talks Eyed
The offshore yuan weakened to around 6.80 per dollar on Friday, pulling back from a more than three-year high reached in the previous session, as investors were underwhelmed by the lack of concrete details from the Trump–Xi summit. During the second day of talks at Zhongnanhai, Trump said “a lot of good” had come from the visit and claimed the two sides had reached “fantastic trade deals,” while Xi said both countries had agreed to stabilize trade ties, expand cooperation, and manage differences constructively. Among the notable developments from the summit, China is expected to purchase 200 Boeing aircraft and increase imports of US agricultural products to “double-digit billions” of dollars over the next three years. Moreover, Trump said Washington and Beijing “feel very similar” about the need to end the conflict and keeping the Strait of Hormuz open, while China’s foreign minister likewise called for the reopening and safeguarding of the critical maritime corridor.
2026-05-15