The offshore yuan held its decline around 7.11 per dollar on Friday as investors weighed disappointing PMI data and the outcomes from the recent Trump-Xi meeting. China’s manufacturing PMI fell to a six-month low of 49 in October 2025, signaling continued weakness in the industrial sector and fueling expectations of further stimulus to support domestic demand. Meanwhile, the services PMI remained near a ten-month low of 50, reflecting subdued economic momentum amid ongoing property market stress and global trade headwinds. On the trade front, the US and China agreed to extend their temporary trade truce for another year, with the US pausing the “50% rule” on export controls and China suspending rare earth export restrictions. However, China’s readout offered few specifics, suggesting that both sides still need to refine and finalize the agreements, leaving some issues unresolved. For the month, the yuan is still on track for a gain.
