The offshore yuan weakened to around 7.07 per dollar, retreating from a thirteen-month high reached in the previous session following the People’s Bank of China’s first weaker-than-expected fixing in months. The central bank set the daily midpoint at 7.0779 per dollar, softer than Reuters’ forecast of 7.0733. This marked the first downside surprise in the fixing since July 1, a move investors interpret as an effort to temper the currency’s appreciation and prevent excessive near-term gains. Meanwhile, investors are awaiting the upcoming PMI releases due this weekend for fresh insights into China’s economic momentum amid persistent domestic and external headwinds. Investors are also looking ahead to the forthcoming Politburo meeting and December’s Central Economic Work Conference (CEWC) for potential signals on next year’s macroeconomic strategy and policy priorities.
