The offshore yuan fell to approximately 7.34 per dollar, ending a two-session winning streak, as the strengthening US dollar weighed on its value.
Offshore yuan drops amid stronger US dollar
The dollar's upward momentum was fueled by strong US economic data, which led to a rise in Treasury yields and reduced expectations for Federal Reserve rate cuts later this year. In addition, the yuan faced added pressure after President-elect Donald Trump dismissed reports suggesting that his aides were considering a targeted approach aimed at sectors crucial to US national and economic security, which created further uncertainty.
Investors eye China’s economic data for insights on growth
Meanwhile, investors are closely monitoring China’s upcoming economic data releases later this week, including inflation and trade figures. These figures are expected to offer valuable insights into the state of the world's second-largest economy and could play a pivotal role in shaping market expectations for China’s economic trajectory and its impact on global markets.
