FX.co ★ Offshore Yuan Falls on Disappointing Trade Data

The offshore yuan weakened to approximately 7.12 per dollar on Friday, erasing gains from the previous session as China's unexpected export contraction exerted pressure on an economy poised for a slowdown toward the year's end. In October 2025, exports declined for the first time in eight months, hitting their lowest level since February. Shipments to the U.S. experienced a downturn for the seventh consecutive month, plummeting by over 25%. Amid these developments, the U.S. and China have decided to extend their temporary trade truce for another year, offering a glimmer of hope for an increase in trade between the world's two largest economies by year's end. Concurrently, imports expanded at their slowest pace since May and significantly missed market expectations, reflecting tepid domestic demand and uncertainty in the labor market. Investors are now focusing on the forthcoming inflation data, expected this weekend. Throughout the week, the yuan is on track to record a modest decline.