The offshore yuan hovered around 7.12 per dollar on Monday, following a two-session decline, as investors weighed disappointing factory activity data against US-China trade developments. A private survey showed that China’s manufacturing PMI slowed more than expected in October, after official data last week indicated that manufacturing activity had contracted for the longest stretch in over nine years. The weak figures could prompt fresh calls for stronger policy support, even as China reached a trade truce with the US. Over the weekend, the White House announced that China would halt new export controls on rare earths and drop investigations into US semiconductor firms as part of a deal under which Washington will pause certain tariffs and cancel a planned 100% levy on Chinese exports. The announcement followed last week’s Trump–Xi summit, which aimed to stabilize bilateral relations.
