The offshore yuan weakened to around 7.03 per dollar, retreating from an over one-year high hit in the previous session, dragged down by a weaker-than-expected daily fixing. The People’s Bank of China set the midpoint rate at 7.0550 per dollar, 172 pips weaker than Reuters’ estimate. These soft fixings have persisted since late November, highlighting the central bank’s efforts to rein in an overly rapid appreciation of the currency. Meanwhile, investors are bracing for the upcoming one-year and five-year loan prime rate decisions expected over the weekend, which may help gauge overall economic conditions. Attention is also on the Standing Committee of the 14th National People’s Congress, which is scheduled to convene its 19th session in Beijing from December 22 to 27. Despite Friday’s modest losses, the yuan remains on track to post a fourth consecutive weekly gain, marking its longest winning streak since June.
