2026.06.2604:28:03UTC+00Offshore Yuan Heads for 2nd Weekly Loss

The offshore yuan weakened to around 6.80 per dollar on Friday and was set for a second straight weekly decline, pressured by a broadly stronger US currency. The dollar extended its gains after the Federal Reserve recently struck a more hawkish tone, prompting markets to price in a 75% chance of an interest rate increase as early as September.

At the same time, the People’s Bank of China announced plans to launch overnight reverse repo operations on June 29–30 as part of the next stage of its monetary policy framework reform. The new tool will complement the existing seven-day reverse repo facility, bringing the PBOC’s policy toolkit more in line with those of major central banks, such as the Federal Reserve.

On the fiscal front, government spending rose 0.8% year-on-year to CNY 11.39 trillion ($1.59 trillion) in the first five months of 2026. Central government expenditure climbed 6.5% to CNY 1.68 trillion, while local government spending edged down 0.1% to CNY 9.71 trillion.