FX.co ★ Offshore Yuan Steady

The offshore yuan remained stable around 6.95 to the dollar on Thursday after a decline in the previous session. Market analysts interpreted the weaker-than-expected daily fixing as a calculated move to ensure a "measured and orderly" pace of currency appreciation. The People's Bank of China set the midpoint rate at 7.0019 per dollar, falling 322 pips short of a Reuters forecast. This recent adjustment is consistent with a pattern observed since early December, underscoring Beijing's approach to prevent a rapid decrease in dollar holdings, mitigate sudden currency fluctuations, and maintain market stability. Additionally, the yuan received support from continued foreign-exchange settlements by exporters and foreign investments flowing into Chinese equities, boosted by sustained investor confidence in artificial intelligence. Economically, youth unemployment among urban individuals aged 16 to 24, excluding students, dropped to 16.5% in November 2025, down from 16.9% in October, marking the lowest level since June.