The offshore yuan steadied to around 6.96 per dollar on Tuesday, trading close to 32-month highs after the central bank left lending rates unchanged, opting for targeted economic support over broad monetary easing. The People’s Bank of China kept the one-year and five-year loan prime rates at 3.0% and 3.5%, respectively, extending an eight-month streak of policy stability. The decision highlighted Beijing’s preference for selective stimulus as economic momentum softened, with household spending and the property sector continuing to weigh on domestic demand. Rather than cutting benchmark rates, authorities have focused on targeted measures to support private firms, small businesses, and technology investment. Meanwhile, the yuan’s strength against the dollar has eased pressure on policymakers, allowing them to prioritize currency stability. The greenback came under pressure after threats from the White House towards the European Union over the future of Greenland rattled global markets.
