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21.07.202605:13:58UTC+00Offshore Yuan Hits 1-Month High

The offshore yuan traded near 6.76 per dollar on Tuesday, its strongest level in a month, supported by firmer official guidance from the People’s Bank of China. The central bank set the daily midpoint at 6.7917 per dollar, 31 pips stronger than the previous fixing of 6.7948, signaling continued policy backing for the currency even as heightened geopolitical tensions in the Middle East lifted safe-haven demand for the US dollar. Additional support came from the State Council, which stressed the need to accelerate policy rollout and enhance the efficiency of fiscal spending, underscoring its commitment to shoring up growth after Q2 GDP slowed to 4.3%—the weakest pace in more than three years and well below Beijing’s annual target range of 4.5% to 5%. Investor attention is now turning to the Communist Party of China’s upcoming Politburo meeting later this month for guidance on the economic policy agenda for the second half of the year.

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