Offshore Yuan Snaps 3-Day Losing Streak

2026-07-09 02:30 By Czyrill Jean Coloma 1 min. read

The offshore yuan rose to around 6.79 per dollar on Thursday, snapping a three-session losing streak, as stronger producer-price growth reinforced expectations that deflationary pressures are easing despite still-muted consumer demand.

Annual producer inflation rose to 4.1% in June from 3.9% in May, marking the fastest pace since July 2022, supported by higher commodity and energy costs amid the Middle East tensions.

Meanwhile, annual consumer inflation eased to a three-month low of 1% from 1.2% in May.

While rising global prices for oil, semiconductors, and industrial metals have lifted factory-gate prices, weak domestic demand has limited cost pass-through to consumers, keeping pressure on profit margins.

On the monetary policy front, the central bank reiterated its commitment to maintaining an appropriately accommodative stance and strengthening financial support for domestic consumption, while acknowledging the persistent imbalance between robust supply and relatively weak demand.



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Offshore Yuan Snaps 3-Day Losing Streak
The offshore yuan rose to around 6.79 per dollar on Thursday, snapping a three-session losing streak, as stronger producer-price growth reinforced expectations that deflationary pressures are easing despite still-muted consumer demand. Annual producer inflation rose to 4.1% in June from 3.9% in May, marking the fastest pace since July 2022, supported by higher commodity and energy costs amid the Middle East tensions. Meanwhile, annual consumer inflation eased to a three-month low of 1% from 1.2% in May. While rising global prices for oil, semiconductors, and industrial metals have lifted factory-gate prices, weak domestic demand has limited cost pass-through to consumers, keeping pressure on profit margins. On the monetary policy front, the central bank reiterated its commitment to maintaining an appropriately accommodative stance and strengthening financial support for domestic consumption, while acknowledging the persistent imbalance between robust supply and relatively weak demand.
2026-07-09
Offshore Yuan Rebounds on PBoC Support
The offshore yuan strengthened to around 6.79 per dollar on Wednesday, rebounding from the previous session as the People's Bank of China showed signs of resisting downward pressure on the currency. The central bank set the daily midpoint fixing at 6.8077 per dollar, just 59 pips weaker than Reuters' estimate. The gap between the official fixing and market estimates has narrowed considerably from levels exceeding 500 pips over the past month, reinforcing expectations of greater official support for the yuan amid stronger US dollar. The greenback remained supported by safe-haven demand after Washington carried out fresh military strikes against Iran and rescinded a sanctions waiver permitting Tehran to export oil to global markets. The yuan has also faced pressure in recent sessions after the World Bank projected that China's economy would slow to 4.4% in 2026 and 4.3% in 2027, while Beijing lowered its 2026 GDP growth target to 4.5%–5.0%, from around 5% over the previous three years.
2026-07-08
Offshore Yuan Extends Fall
The offshore yuan depreciated to around 6.80 per dollar on Tuesday, extending losses from the previous session and hitting a one-week low as investors weighed the latest outlook for China's economy. The World Bank projected China's economic growth to slow to 4.4% in 2026 and 4.3% in 2027, citing a prolonged property market downturn and subdued consumer spending. Meanwhile, the government also set its 2026 GDP growth target at 4.5%–5.0%, the lowest since 1991 and the first downward revision since 2023, after maintaining a target of around 5% over the previous three years. Separately, the PBoC announced measures to strengthen Hong Kong's role as an offshore yuan hub. These include more than doubling the RMB Business Facility to 500 billion yuan, raising the annual Southbound Bond Connect quota to 800 billion yuan from 500 billion yuan, and pledging support for more yuan-denominated commodity products following the launch of a new gold clearing system in Hong Kong backed by major banks.
2026-07-07