Offshore yuan extend gains
The offshore yuan appreciated to around 7.12 per dollar on Monday, extending the previous session's gains, driven by fresh policy measures and expectations of further stimulus.
The People’s Bank of China introduced steps to lure foreign investors into its bond market and promote wider use of the yuan, including expanding access to the bond repo market.
The central bank also launched a digital yuan center in Shanghai and outlined plans to boost offshore yuan business in Hong Kong.
Sentiment was further supported by data showing industrial profits returned to growth in August, while analysts added that looser monetary and fiscal policies could drive further yuan appreciation, with rate cuts expected later this year.
Markets now await upcoming PMI figures to gauge the country’s economic health.
Elsewhere, the US dollar came under pressure amid concerns over a potential government shutdown, with markets watching Trump’s meeting with congressional leaders today for signs of a funding deal.
UCapital Asset Management LLP or group companies may have commercial relationships with the companies mentioned. This content is not financial advice.
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