The offshore yuan steadied around 6.89 per dollar on Thursday, as a stronger daily fixing helped offset cautious market sentiment following Beijing’s newly lowered economic growth target. China set a GDP growth target of around 4.5% to 5% for 2026, its most restrained goal since 1991, signaling policymakers’ growing willingness to tolerate slower growth as they shift the economy toward more sustainable drivers and reduce reliance on debt-fueled property and infrastructure investment. The lower target also underscores rising recognition in Beijing that the model which powered China’s rapid expansion for more than four decades is facing mounting structural pressures. Meanwhile, the PBoC set the daily midpoint at 6.9007 per dollar, about 0.07% stronger than its previous fixing and the strongest level in 34 months. The firmer midpoint was interpreted by market participants as an effort by authorities to steady the currency amid broad dollar strength and heightened geopolitical tensions.
