10.07.202602:18:32UTC+00Offshore Yuan Hits Near 3-Week High

China’s offshore yuan strengthened to around 6.78 per dollar on Friday, extending the previous session’s gains to reach its highest level in nearly three weeks. The move came after the People’s Bank of China signaled greater tolerance for currency appreciation. The central bank set the yuan’s daily reference rate at 6.7989 per dollar, stronger than Thursday’s 6.8036 fixing and below the closely watched 6.80 threshold for the first time since 2023. A fixing below 6.80 per dollar is widely interpreted by investors as a sign that authorities are not attempting to curb the yuan’s recent gains. Market focus is now shifting to a dense calendar of Chinese economic data due next week, including trade figures, second-quarter GDP, industrial production, retail sales, and unemployment. These releases are expected to offer fresh insight into the economy’s underlying momentum and could influence expectations for the yuan’s near-term trajectory.