FX.co ★ Offshore Yuan Rises on Upbeat PMI Data

The offshore yuan appreciated to approximately 7.25 per dollar, backed by positive manufacturing data that uplifted market sentiment. Official reports indicated that China’s composite PMI climbed to 51.4 in March 2025, up from 51.1 in February, reaching its highest level in three months. Furthermore, the services sector’s activity rose to 50.8 in March 2025, exceeding forecasts and marking a three-month peak, while manufacturing activity increased to 50.5. This marks the swiftest growth seen in a year, suggesting effective recovery fueled by Beijing’s stimulus measures. Complementing this growth, China plans to infuse 500 billion yuan into four major state-owned banks to fortify its financial sector—a strategic initiative aimed at ensuring liquidity and boosting investor confidence amid global economic uncertainties. Concurrently, South Korea, China, and Japan have agreed to cooperate in establishing a free trade agreement to enhance regional commerce as they prepare for potential tariff announcements from Trump.