Offshore yuan falls below 7.15 amid U.S. dollar strength

The offshore yuan fell below 7.15 per dollar, reaching its lowest point in over two months, pressured by a strengthening U.S. dollar.

Offshore yuan falls below 7.15 amid U.S. dollar strength

This is supported by signs of resilience in the American economy and rising expectations of a potential Donald Trump victory in the upcoming presidential election. As part of his campaign to revitalize American manufacturing, Trump has committed to imposing 60% or more tariffs on Chinese imports. Additionally, traders are exercising caution as they await more information on expected fiscal stimulus measures from Chinese leadership during the upcoming November 4-8 meeting. Market participants are also anticipating China's PMI data, set to be released on Thursday, which will offer insights into the economic health of the world's second-largest economy.

PBOC to launch reverse repo operations to boost liquidity starting October 28

Meanwhile, the People's Bank of China (PBOC) announced on Monday that it would begin "outright reverse repurchase operations" with primary dealers starting October 28, 2024, to inject liquidity and stabilize market conditions amid ongoing economic pressures.