10.11.202504:11:19UTC+00Offshore Yuan Steady Amid Strong Inflation Data

The offshore yuan remained relatively stable at approximately 7.12 per dollar, showing a sideways trading pattern. Recent weekend data indicated that consumer prices in China surprisingly increased by 0.2% in October, recovering from a previous decline of 0.3% in September, contrary to expectations of no change. Producer prices saw a 2.1% drop last month, marking the smallest decrease in 14 months. These numbers followed unexpected trade data from the previous week, highlighting a decline in exports and a slowdown in imports. In trade developments, Beijing has lifted its export ban on certain "dual-use items" such as gallium, germanium, antimony, and super-hard materials to the US, and also granted a Dutch company, Nexperia, exemptions for civilian-use chips, which should alleviate supply shortages for automakers. Last month, China and the US agreed to prolong their temporary trade truce for an additional year, making concessions on crucial issues. Simultaneously, the People’s Bank of China set the USD/CNY reference rate at 7.0856, which was stronger than market predictions.