Offshore yuan dips near 6.71 per dollar after higher midpoint
Offshore yuan edged lower to around 6.71 per dollar. The People’s Bank of China set the daily midpoint at 6.7795 per dollar, 709 pips weaker than Reuters’ estimate, after last session’s more than three-year high.
71 per dollar on Monday, pulling back from a more than three-year high in the prior session as the People’s Bank of China continued to signal a more measured approach to appreciation. 7795 per dollar, 709 pips weaker than Reuters’ estimate, the largest move to the weak side since a record in February 2025. Chinese banks have also raised dollar deposit rates and stepped up purchases of US Treasuries in recent months, moves that could help temper yuan gains as US yields rise.
China is also injecting CNY 300 billion ($45 billion) into its largest banks and insurers in what it described as its biggest financial-sector recapitalization in nearly two decades, with the aim of strengthening balance sheets and supporting credit growth as the economy slows. Attention now turns to trade and inflation data due later this week.