FX.co ★ Offshore Yuan Slips as PBOC Sets Weak Fixing

The offshore yuan eased to around 6.72 per dollar on Monday, ending a three-session rally and retreating from a more than three-year high hit in the previous session. The pullback came as a softer-than-expected official fixing outweighed support from a broadly weaker US dollar. The People’s Bank of China set the daily midpoint at 6.7841 per dollar, down from Friday’s strongest fixing in over three years and 593 pips weaker than Reuters’ estimate, approaching the widest deviation seen in February 2026. The move underscored efforts by policymakers to slow the yuan’s appreciation amid continued dollar weakness, while maintaining stability in the foreign-exchange market. Investors are now focused on the National People’s Congress Standing Committee meeting scheduled for August 25–28, seeking fresh policy signals following a string of disappointing economic data and recent pledges by authorities to shore up growth.