The offshore yuan traded around 7.11 per dollar, moving sideways near a one-week high, as the central bank continued to guide the currency stronger. The People’s Bank of China set the midpoint at 7.0847 on Monday, firmer than Friday’s 7.0875 fix and the 7.1162 estimate, signaling its effort to stabilize the yuan. Analysts noted that the fixing has recently tracked the broader dollar trend. The US dollar remained broadly stronger amid divided Fed policy expectations. Last week, the PBoC kept benchmark loan prime rates unchanged for the sixth consecutive month in November, in line with market expectations, after signaling less urgency for further stimulus. Attention now turns to December’s Politburo meeting and Central Economic Work Conference for hints on next year’s policy. The government is said to target roughly 5% GDP growth in 2026, likely requiring a larger fiscal package. Reports also indicate that China is considering new steps to revive its struggling property market.
