FX.co ★ Offshore Yuan Continues to Fall, Yet Poised for Weekly Gain

The offshore yuan dropped beyond 7.11 per dollar on Friday, continuing its decline from the previous session due to a strengthening US dollar. This comes as the Federal Reserve indicated a cautious stance towards easing monetary policy, following a 25 basis point interest rate cut announced on Wednesday. Despite the downward pressure on the yuan from the appreciating dollar, its losses were mitigated by positive developments from Hong Kong. In an effort to enhance the renminbi's prominence in global markets, Hong Kong unveiled plans to increase the issuance of yuan-denominated bonds and conduct a portion of its government spending in the Chinese currency. Looking ahead, market participants are eagerly awaiting the announcement of China’s loan prime rates over the weekend. Despite consecutive declines, the yuan is poised for a weekly gain.