Offshore Yuan Strongest Since 2023

2026-08-20 02:29 By Czyrill Jean Coloma 1 min. read

The offshore yuan strengthened to around 6.72 per dollar on Friday, marking its third straight session of gains and reaching its strongest level since January 2023, as persistent weakness in the US dollar continued to support the currency.

The greenback remained under pressure as expectations for further Fed rate hikes eased, while the announcement of expanded bond buybacks boosted demand for longer-dated Treasuries and weighed on the dollar.

On the monetary policy front, the central bank kept its benchmark lending rates unchanged at record lows for a fifteenth consecutive month.

The one-year loan prime rate (LPR) was held at 3%, while the five-year LPR remained at 3.5%, reflecting policymakers' cautious approach amid lingering domestic and external uncertainties.

Attention is now turning to the National People's Congress Standing Committee meeting in Beijing on August 25–28, where investors hope for additional policy guidance following a string of weak economic data releases for July.



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