The offshore yuan strengthened to around 7.25 per dollar after China’s top leaders indicated plans for more aggressive stimulus measures in 2025 to support the world’s second-largest economy.
Offshore yuan extends rebound
The Politburo committed to a “moderately loose” monetary policy, marking its first major shift since 2011, and vowed to implement more proactive fiscal measures to boost consumption and stabilize the property and stock markets. The announcement, made late Monday after market hours, also highlighted the government's focus on expanding domestic demand. The yuan’s rally could continue ahead of this week’s Central Economic Work Conference, where traders expect further details on economic support.
Focus on political decisions
The conference is expected to outline priorities and targets for 2025, as the latest inflation data points to ongoing deflationary pressures, underscoring the need for stronger action. Despite the rally, the yuan remained near a key level, reflecting caution from traders amid anticipated rate cuts in China and potential US trade tariffs.
