The offshore yuan fell below 7.24 per dollar, approaching its lowest level in over three months, as concerns over potential US tariffs continue to weigh on its outlook.
Offshore yuan slips on fragile outlook
Traders anticipate the yuan's weakness will persist into next year, as the threat of higher tariffs under Donald Trump's presidency could further hinder China’s fragile economic recovery. Investors are also awaiting the People's Bank of China’s LPR decision on Wednesday, with expectations that both the one-year and five-year rates will remain unchanged at 3.1% and 3.6%, respectively.
Market sees summit in Hong Kong
Additionally, markets are closely monitoring an investment summit in Hong Kong, where key Chinese officials and leaders from major economic and financial institutions will discuss recent developments in China’s financial sector. Meanwhile, the yuan received some support from stronger-than-expected official guidance and tighter offshore liquidity, with the PBOC setting its midpoint fixing at 7.1911 per dollar to limit further weakness.
