Offshore Yuan Heads for 2nd Weekly Loss

2026-06-26 04:28 By Czyrill Jean Coloma 1 min. read

The offshore yuan weakened to around 6.80 per dollar on Friday and was on track for a second consecutive weekly loss, remaining under pressure from a broadly strong US dollar.

The greenback continued its momentum after the Federal Reserve recently adopted a more hawkish stance, leading markets to price in a 75% probability of a rate hike as early as September.

Meanwhile, the People's Bank of China unveiled plans to introduce overnight reverse repo operations on June 29–30 as part of the next phase of its monetary policy framework reform.

This will complement the existing seven-day reverse repo rate, bringing the PBOC's policy toolkit more closely in line with those of major central banks, including the Federal Reserve.

On the economic front, fiscal expenditure rose 0.8% year-on-year to CNY 11.39 trillion ($1.59 trillion) in the first five months of 2026.

Central government spending increased 6.5% to CNY 1.68 trillion, while local government expenditure fell 0.1% to CNY 9.71 trillion.



News Stream
Offshore Yuan Heads for 2nd Weekly Loss
The offshore yuan weakened to around 6.80 per dollar on Friday and was on track for a second consecutive weekly loss, remaining under pressure from a broadly strong US dollar. The greenback continued its momentum after the Federal Reserve recently adopted a more hawkish stance, leading markets to price in a 75% probability of a rate hike as early as September. Meanwhile, the People's Bank of China unveiled plans to introduce overnight reverse repo operations on June 29–30 as part of the next phase of its monetary policy framework reform. This will complement the existing seven-day reverse repo rate, bringing the PBOC's policy toolkit more closely in line with those of major central banks, including the Federal Reserve. On the economic front, fiscal expenditure rose 0.8% year-on-year to CNY 11.39 trillion ($1.59 trillion) in the first five months of 2026. Central government spending increased 6.5% to CNY 1.68 trillion, while local government expenditure fell 0.1% to CNY 9.71 trillion.
2026-06-26
Offshore Yuan Holds Near 1-Month Low
The offshore yuan steadied around 6.81 per dollar on Thursday, hovering near a one-month low after the People’s Bank of China unveiled plans to introduce overnight reverse repo operations as part of its next phase of monetary policy reform. The central bank said it will conduct overnight reverse repurchase operations on June 29–30, providing fixed-rate overnight liquidity to better address short-term funding needs in the banking system. The new overnight reverse repo rate will complement the existing seven-day rate of 1.4%, bringing the PBOC’s policy toolkit closer in line with major global central banks such as the Federal Reserve. During the Lujiazui Forum, Governor Pan Gongsheng outlined the central bank’s plans to broaden overnight reverse repo operations. Externally, the yuan remained under pressure from a stronger US dollar amid growing market expectations of further Federal Reserve interest rate hikes later this year.
2026-06-25
Offshore Yuan Hits 1-Month Low
The offshore yuan depreciated to around 6.80 per dollar on Wednesday, hitting its lowest level in a month, as a stronger US dollar continued to weigh on the currency. The greenback remained supported by mounting expectations that the Federal Reserve could raise interest rates in September, with markets now assigning roughly a 70% chance of a rate hike. Further pressure came from the People's Bank of China, which continued to set the yuan's daily reference rate at weaker-than-expected levels. The central bank fixed the currency at 6.8195 per dollar on Wednesday, extending its longest streak of weaker fixings since April 2025. Meanwhile, China has effectively halted certain tungsten exports to Japan, while rare-earth magnet shipments fell to a one-year low in May, when Beijing first rolled out its global export-control regime. Such restrictions have remained in place amid tensions over Taiwan-related remarks by Japanese Prime Minister Sanae Takaichi.
2026-06-24