
The offshore yuan edged higher to around 6.77 per dollar on Monday, trimming losses from the previous session as broader market sentiment improved on progress in US-Iran talks while investors assessed the People’s Bank of China’s decision to leave its key lending rates unchanged. The PBoC maintained the one-year loan prime rate (LPR) at 3.0% and the five-year LPR at 3.5% for a thirteenth consecutive month, underscoring policymakers’ cautious approach as they seek to sustain growth while safeguarding financial stability. China’s economic recovery remains uneven. While resilient exports continue to provide support, domestic consumption and the property sector remain subdued. Meanwhile, the US and Iran reported constructive progress in negotiations aimed at easing regional tensions, with both sides agreeing on a roadmap toward a potential final agreement within 60 days and the establishment of a direct communication channel designed to reduce the risk of incidents and miscalculations.
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