The offshore yuan strengthened to around 6.96 per dollar on Monday, hitting a fresh thirty-two-month high, as investors weighed China’s latest key economic figures. Economic growth slowed to its weakest pace in nearly three years in the fourth quarter, expanding 4.5% from 4.8% in Q3, but still came in slightly above market expectations of 4.4%. Full-year growth also reached 5%, in line with Beijing’s target and matching 2024’s pace, supported by a record trade surplus as strong exports to non-US markets offset pressure from US tariffs. Separate December data showed industrial output exceeded expectations, while retail sales and fixed asset investment fell short. Meanwhile, increased year-end demand from exporters and the central bank’s measured appreciation continued to strengthen the yuan. A weaker US dollar added further support as President Trump’s tariff threats against Europe spurred demand into other safe-haven currencies.
