13.02.202605:19:56UTC+00Offshore Yuan Slips, Still Poised for Weekly Gain

The offshore yuan weakened to around 6.90 per dollar on Friday, snapping a six-day winning streak and pulling back from a 33‑month high hit in the previous session, after a weaker-than-expected daily fixing. The People’s Bank of China set the yuan’s midpoint at 6.9398 per dollar, 350 pips below a Reuters forecast. The move signaled an official effort to rein in the currency’s recent gains, with policymakers appearing wary of allowing the yuan to appreciate too quickly, especially as seasonal factors typically bolster demand for the currency ahead of the Lunar New Year.

On the geopolitical front, the United States has reportedly paused several major tech‑security measures targeting China ahead of a planned April meeting between Presidents Donald Trump and Xi Jinping, easing some pressure on markets. Despite Friday’s retreat, the offshore yuan is still on track for a second consecutive weekly advance, poised for its strongest weekly performance since May 2023.