Offshore Yuan Holds Decline

2026-09-02 06:07 By Czyrill Jean Coloma 1 min. read

The offshore yuan held its decline around 6.72 per dollar on Wednesday as the US dollar strengthened amid mounting inflation concerns and growing expectations of a near-term Federal Reserve rate hike.

The greenback remained firm as renewed tensions in the Middle East heightened fears of further disruptions in the Strait of Hormuz, adding to inflationary pressures and reinforcing expectations that major central banks could keep monetary policy tighter for longer.

Further weighing on the yuan, the People’s Bank of China set the daily midpoint fixing at 6.7829 per dollar, 591 pips weaker than the Reuters estimate, signaling continued efforts by policymakers to temper the currency’s appreciation.

On the geopolitical front, Putin and Xi discussed the possibility of a trilateral meeting with Trump on the sidelines of China’s APEC summit in November, while Xi is also set to visit Washington later this month for talks with the US president.



News Stream
Offshore Yuan Holds Decline
The offshore yuan held its decline around 6.72 per dollar on Wednesday as the US dollar strengthened amid mounting inflation concerns and growing expectations of a near-term Federal Reserve rate hike. The greenback remained firm as renewed tensions in the Middle East heightened fears of further disruptions in the Strait of Hormuz, adding to inflationary pressures and reinforcing expectations that major central banks could keep monetary policy tighter for longer. Further weighing on the yuan, the People’s Bank of China set the daily midpoint fixing at 6.7829 per dollar, 591 pips weaker than the Reuters estimate, signaling continued efforts by policymakers to temper the currency’s appreciation. On the geopolitical front, Putin and Xi discussed the possibility of a trilateral meeting with Trump on the sidelines of China’s APEC summit in November, while Xi is also set to visit Washington later this month for talks with the US president.
2026-09-02
Offshore Yuan Edges Lower
The offshore yuan edged lower to around 6.72 per dollar on Tuesday, reversing gains from the previous session as the People's Bank of China continued to temper the currency’s appreciation. The central bank set the daily midpoint at 6.7809 per dollar, 640 pips weaker than the Reuters estimate and near the largest downside deviation recorded since February. The move extended a recent pattern of fixing the yuan below market expectations, signaling policymakers’ intent to curb further strength after the currency’s roughly 4% year-to-date rally. On the domestic front, economic data offered fresh signs of resilience in the manufacturing sector. A private survey showed that the manufacturing PMI rose to 51.5 in August from a four-month low of 50.9 in July, beating forecasts of 51.0. The reading followed official data showing manufacturing activity improving to 49.8 from 49.2, also exceeding expectations of 49.7.
2026-08-27
Offshore Yuan Falls as PBOC Sets Weak Fixing
The offshore yuan weakened to around 6.72 per dollar on Wednesday, reversing gains from the previous month, weighed down by a softer-than-expected official fixing. The People’s Bank of China set the yuan’s midpoint at 6.7829 per dollar, 663 pips below the Reuters estimate and marking its largest negative deviation since February. The weaker-than-expected fixing extended a trend seen since November 2025, underscoring the central bank’s efforts to temper the yuan’s recent appreciation while maintaining stability in the currency market. Investors remained focused on escalating US-Iran tensions after Washington expanded sanctions on Iran. Attention also turned to the National People’s Congress Standing Committee meeting, scheduled for August 25–28, with investors looking for fresh policy guidance after a run of disappointing economic data and recent commitments by authorities to bolster growth.
2026-08-24