Offshore Yuan Edges Lower

The offshore yuan edged lower to around 6.71 per dollar on Monday, retreating from a more than three-year high reached in the previous session as the People’s Bank of China continued to signal a more measured approach to the currency’s appreciation. The central bank set its daily midpoint at 6.7795 per dollar, 709 pips weaker than Reuters’ estimate, marking the largest deviation to the weak side since a record in February 2025. Chinese banks have also raised dollar deposit rates and increased purchases of US Treasuries in recent months, moves that could help temper yuan gains amid rising US yields. Meanwhile, China is injecting CNY 300 billion ($45 billion) into its largest banks and insurers as part of the country’s biggest financial-sector recapitalization in nearly two decades, aimed at strengthening balance sheets and supporting credit growth as the economy slows. Attention now turned to trade and inflation data due later this week.

Register a Revolut Business Account