The offshore yuan steadied around 7.07 per dollar on Friday, remaining on track for monthly gains as a weakening US dollar supported the currency. The greenback declined as markets increased expectations for a further Federal Reserve rate cut in December, with futures now pricing in an 87% probability of a 25-basis-point reduction. Meanwhile, the People’s Bank of China set the daily midpoint rate at 7.0789 per dollar, marking the second consecutive session in which its official guidance came in weaker than market expectations. On the economic front, investors are bracing for the upcoming PMI release this weekend before turning their attention to the Central Economic Work Conference (CEWC) in December for potential signals on the policy agenda for 2026.
