The offshore yuan fell below 7.24 per dollar, hitting its lowest level in over three months, as a strong U.S. dollar, fueled by the continuation of "Trump trades," weighed on the currency.
Chinese yuan still down against dollar
The yuan's decline was further aggravated by disappointing Chinese economic data and a lackluster stimulus package. On Monday, Chinese banks reported extending only CNY 500 billion in new loans for October, a sharp drop from September’s figures and significantly below market expectations. Over the weekend, China also revealed that October’s consumer inflation had fallen to a four-month low, missing forecasts, while producer prices continued their 25-month deflationary trend, marking the steepest decline since November 2023.
Investors left without stimulus hopes
Additionally, China's announcement of a CNY 10 trillion debt package last week, aimed at easing local government financial strain and supporting economic growth, failed to provide the direct stimulus that investors had hoped for, further dampening sentiment.
