FX.co ★ Offshore Yuan Set for Monthly Gains

The offshore yuan stabilized around 7.07 per dollar on Friday, poised for monthly increases as the weakening US dollar lent support to the currency. The decline in the greenback came amid mounting market anticipation of an additional Federal Reserve rate cut in December, with futures reflecting an 87% likelihood of a 25-basis-point decrease. Concurrently, the People’s Bank of China fixed the daily midpoint rate at 7.0789 per dollar for the second consecutive session, providing official guidance that was weaker than market predictions. On the economic front, investors are preparing for the upcoming release of PMI data this weekend, after which they will shift their focus to the Central Economic Work Conference (CEWC) in December, seeking clues on the policy directions for 2026.