Offshore Yuan Hits Fresh 32-Month High

2026-01-19 03:23 By Joshua Ferrer 1 min. read

The offshore yuan strengthened to around 6.96 per dollar on Monday, hitting a fresh thirty-two-month high as the central bank’s strongest daily fixing in over two years offset China’s mixed GDP numbers.

Economic growth slowed to its weakest pace in nearly three years in the fourth quarter, expanding 4.5% from 4.8% in Q3, but still came in slightly above market forecasts of 4.4%.

Full-year growth reached 5%, in line with Beijing’s target and matching 2024’s pace, helped by a record trade surplus as strong exports to non-US markets offset pressure from US tariffs.

Separate December data showed domestic consumption weakened and the investment decline steepened, while manufacturing improved.

Meanwhile, the People’s Bank of China set the midpoint rate at 7.0051 per dollar, its strongest since May 18, 2023, signaling tolerance for further appreciation.

A weaker US dollar added further support as President Trump’s tariff threats against Europe spurred demand into other safe-haven currencies.



News Stream
Offshore Yuan Set for Weekly Gains
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Offshore Yuan Snaps 3-Session Gains
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Offshore Yuan Rallies on Peace Hopes
The offshore yuan strengthened to around 6.87 per dollar on Wednesday, marking its third straight session of gains and reaching a near two-week high, as optimism over a potential resolution to the Middle East conflict dented demand for the greenback. President Trump said US forces would end operations in Iran within two to three weeks, while adding that any agreement was “irrelevant” to Washington’s timeline. Iranian President Masoud Pezeshkian stated that Tehran had the “necessary will” to end the conflict, provided that safeguards are in place to prevent renewed hostilities. The yuan gained further support as BOC Hong Kong works with regulators to upgrade digital wallets, following China’s move to allow interest on the currency, a step that could boost offshore adoption. Meanwhile, a private survey showed that the manufacturing PMI fell to 50.8 in March 2026, from 52.1 in February. In contrast, official data indicated that the manufacturing PMI rebounded to a one-year high of 50.4.
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