The offshore yuan weakened to around 7.12 per dollar on Friday, reversing gains from the previous session as China’s unexpected export contraction weighed on an economy facing a year-end slowdown. Exports fell for the first time in eight months in October 2025, reaching its lowest level since February, with shipments to the US plunging for seventh straight month to over 25%. In a rare easing of trade frictions, the US and China agreed to extend their temporary trade truce for another year, raising the possibility of a pickup in trade between the world’s two largest economies through year-end. Meanwhile, imports grew at its slowest pace since May and well below market expectations, indicating weak domestic demand and labor market uncertainty. Investors have now turned their attention to the country’s inflation figures, due this weekend. Over the week, the yuan is set to post a modest decline.
