The offshore yuan dropped below 7.25 per dollar, reaching its lowest level in over three months, as a stronger U.S. dollar followed recent inflation data and comments from the Federal Reserve.
Offshore yuan falls below 7.25 as US dollar gains
The dollar gained further momentum from "Trump trades," with markets betting that a potential second Trump administration could drive strong growth and higher inflation, limiting the Fed's ability to cut interest rates. Meanwhile, new bank loans fell sharply in China in October, missing market expectations. Additionally, October's consumer inflation** in China hit a four-month low, while producer prices continued their 25-month deflationary streak, marking the most significant decline since November 2023.
Traders eye key economic data and PBOC rate decision
Traders are now focused on upcoming economic data this week, including industrial production, retail sales, unemployment figures, and the PBOC's decision on the one-year Medium-Term Lending Facility (MLF) rate.
