Offshore Yuan Hits 1-Month High

2026-07-15 02:48 By Czyrill Jean Coloma 1 min. read

The offshore yuan strengthened to around 6.76 per dollar on Wednesday, extending gains from the previous session to its strongest level in a month, supported by a weaker US dollar even as China’s economic data pointed to uneven growth.

The greenback remained under pressure after softer-than-expected US inflation data reduced expectations for a near-term Federal Reserve rate hike, with traders now pricing in a pause at the July meeting despite ongoing oil-driven inflation risks.

Meanwhile, China’s economy expanded 4.3% year-on-year in Q2, marking the weakest growth since Q4 2022 and falling below Beijing’s 2026 target range of 4.5%–5.0%.

Fixed-asset investment declined 5.7% in the first half, worse than both market expectations and the January–May decline.

However, signs of resilience emerged as industrial production accelerated to a three-month high of 5.3% in June, retail sales rebounded 1%, and the urban unemployment rate eased to a one-year low of 5.0%.



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Offshore Yuan Hits 1-Month High
The offshore yuan strengthened to around 6.76 per dollar on Wednesday, extending gains from the previous session to its strongest level in a month, supported by a weaker US dollar even as China’s economic data pointed to uneven growth. The greenback remained under pressure after softer-than-expected US inflation data reduced expectations for a near-term Federal Reserve rate hike, with traders now pricing in a pause at the July meeting despite ongoing oil-driven inflation risks. Meanwhile, China’s economy expanded 4.3% year-on-year in Q2, marking the weakest growth since Q4 2022 and falling below Beijing’s 2026 target range of 4.5%–5.0%. Fixed-asset investment declined 5.7% in the first half, worse than both market expectations and the January–May decline. However, signs of resilience emerged as industrial production accelerated to a three-month high of 5.3% in June, retail sales rebounded 1%, and the urban unemployment rate eased to a one-year low of 5.0%.
2026-07-15
Offshore Yuan Rebounds on Trade Data
The offshore yuan rose to around 6.77 per dollar on Tuesday, rebounding from the previous session as stronger-than-expected trade data pointed to resilient external demand. Exports surged 27% year-on-year to a record USD 412.4 billion, while imports jumped 36% to an all-time high of USD 286.8 billion, both exceeding forecasts. As a result, China posted its second-largest trade surplus on record at USD 125.6 billion, primarily driven by strong global demand for AI-related hardware and higher semiconductor prices. These factors continued to support Asia's trade flows, helping cushion the impact of domestic economic weakness. China's economy is projected to slow to 4.5% year-on-year in the second quarter on Wednesday, down from 5.0% in Q1 and near the lower end of Beijing's 2026 growth target range of 4.5%–5.0%. Growth has been weighed down by weak consumer spending, a prolonged property downturn, and subdued private investment.
2026-07-14
Offshore Yuan Slips on Stronger Dollar
The offshore yuan weakened to around 6.78 per dollar on Monday, retreating from a near three-week high reached in the previous session as escalating tensions in the Middle East boosted demand for safe-haven assets. The US dollar strengthened as surging oil prices revived expectations that the Federal Reserve may need to keep monetary policy tighter for longer, following a weekend of intensified clashes between the US and Iran and continued uncertainty over shipping through the Strait of Hormuz. However, the yuan's losses were partly tempered by the People's Bank of China's midpoint fixing of 6.7972 per dollar, its strongest since February 10, 2023, although it was set 122 pips weaker than Reuters' estimate. Investors are now awaiting a raft of key Chinese economic data due later this week, including trade figures, Q2 GDP, industrial production, retail sales, and unemployment data.
2026-07-13