Offshore Yuan Hits Over 1-Month High

2026-07-27 02:17 By Czyrill Jean Coloma 1 min. read

The offshore yuan rose to around 6.76 per dollar on Monday, its strongest level since mid-June, as easing geopolitical tensions in the Middle East reduced safe-haven demand for the US dollar.

US Ambassador Mike Waltz said President Trump had paused strikes on Iran for a second consecutive night to facilitate diplomatic efforts, while an Iranian military spokesperson said Tehran had suspended its retaliatory operations.

The development signals a tentative easing in tensions after nearly two weeks of reciprocal attacks that had effectively undermined the June ceasefire.

On the domestic front, investors are turning their attention to the upcoming Politburo meeting later this week, where President Xi Jinping and other top policymakers are expected to outline priorities for the second half of the year.

Expectations for additional policy support have grown after recent economic indicators pointed to an uneven recovery, reinforcing calls for measures to bolster growth and stabilize demand.



News Stream
Offshore Yuan Hits Over 1-Month High
The offshore yuan rose to around 6.76 per dollar on Monday, its strongest level since mid-June, as easing geopolitical tensions in the Middle East reduced safe-haven demand for the US dollar. US Ambassador Mike Waltz said President Trump had paused strikes on Iran for a second consecutive night to facilitate diplomatic efforts, while an Iranian military spokesperson said Tehran had suspended its retaliatory operations. The development signals a tentative easing in tensions after nearly two weeks of reciprocal attacks that had effectively undermined the June ceasefire. On the domestic front, investors are turning their attention to the upcoming Politburo meeting later this week, where President Xi Jinping and other top policymakers are expected to outline priorities for the second half of the year. Expectations for additional policy support have grown after recent economic indicators pointed to an uneven recovery, reinforcing calls for measures to bolster growth and stabilize demand.
2026-07-27
Offshore Yuan Steady
The offshore yuan steadied around 6.77 per dollar on Friday, as expanding liquidity in Hong Kong highlighted progress in China's efforts to internationalize its currency. Offshore yuan deposits in the city reached a record CNY 1.13 trillion at the end of May, while yuan clearing volume rose to CNY 53.2 trillion in June, surpassing settlement volumes in both the Hong Kong dollar and the US dollar. Strong demand for yuan financing, driven by China's relatively lower interest rates, has fueled growth in offshore yuan loans, bond issuance, and hedging activity. Meanwhile, the People's Bank of China said it would inject a net CNY 500 billion into the banking system through a one-year MLF operation, following CNY 700 billion in liquidity added earlier this month via outright reverse repos. The move marks the largest medium- to long-term liquidity injection since February and is aimed at supporting growth ahead of the late-July Politburo meeting.
2026-07-23
Offshore Yuan Slips from 1-Month High
The offshore yuan weakened to around 6.77 per dollar on Wednesday, retreating from a one-month high reached in the previous session as escalating geopolitical tensions in the Middle East fueled safe-haven demand for the US dollar. The greenback remained firm after Washington carried out strikes on Iranian targets for an 11th consecutive day, while President Donald Trump downplayed expectations for negotiations with Tehran. Further pressuring the yuan, the People's Bank of China set the yuan's midpoint rate at 6.7933 per dollar, 196 pips weaker than Reuters' estimate, signaling official tolerance for a softer exchange rate. Investors are now looking ahead to the Politburo meeting expected later this month for clues on Beijing's economic policy direction in the second half of the year, with any signals of fresh stimulus or additional growth-support measures likely to shape the yuan's outlook.
2026-07-21