The offshore yuan remained around 7.12 per dollar, trading in a sideways range as weekend data showed consumer prices in China unexpectedly rose 0.2% in October, rebounding from a 0.3% decline in September and defying forecasts for no change. Producer prices fell 2.1% last month, the softest decrease in 14 months. Those figures followed trade data last week pointing to a surprise decline in exports and slowing imports. On the trade front, Beijing lifted its export ban on “dual-use items” including gallium, germanium, antimony, and super-hard materials to the US, and granted exemptions for Dutch firm Nexperia’s chips for civilian use, helping ease supply shortages for automakers. Last month, China and the US agreed to extend their temporary trade truce for another year with concessions on key issues. Meanwhile, the People’s Bank of China set the USD/CNY reference rate at 7.0856, stronger than market expectations.
